Banks and the economy: evidence from the Irish Bank Strike of 1966

Emma Horgan, Seán Kenny and Jason Lennard

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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; post-war (search for similar items in EconPapers)
JEL-codes: E32 E44 G21 N14 N24 (search for similar items in EconPapers)
Date: 2026-09-16
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Published in Economic History Review, 16, September, 2026. ISSN: 1468-0289

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