Banks and the Economy: Evidence from the Irish Bank Strike of 1966

Emma Horgan, Sean Kenny and Jason Lennard

No 18711, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper studies the macroeconomic impact of the Irish bank strike of 1966, which led to the closure of the major commercial banks for three months. We collect a variety of new evidence, such as high-frequency macro data, economic forecasts, micro data and narrative sources. Our findings suggest that the bank strike was associated with a shortfall in economic activity that punctuated a decade of robust growth. The qualitative evidence depicts the struggles of households and firms managing a credit crunch, a liquidity shock and rising transaction costs. This case study highlights the importance of banks for economic performance.

Keywords: Banks; Ireland; Macroeconomy (search for similar items in EconPapers)
JEL-codes: E32 E44 G21 N14 N24 (search for similar items in EconPapers)
Date: 2023-12
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Related works:
Working Paper: Banks and the economy: evidence from the Irish Bank Strike of 1966 (2026)
Working Paper: Banks and the Economy: Evidence from the Irish Bank Strike of 1966 (2024)
Working Paper: Banks and the Economy: Evidence from the Irish Bank Strike of 1966 (2023)
Working Paper: Banks and the economy: Evidence from the Irish bank strike of 1966 (2023)
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