Exchange rate policy when the labour market exhibits hysteresis

Frank Barry

No 199414, Working Papers from School of Economics, University College Dublin

Abstract: This paper analyzes the effects of exchange rate shocks in a small open economy whose labor market exhibits hysteresis. The model is used to highlight deficiencies in the response of the Irish authorities to exchange rate crisis of 1992/93. A secondary purpose of the paper, though, is to induce those who accept that the Irish labour market is characterised by hysteresis but who reject the argument made here that a more aggressive devaluation should have been pursued, to spell out the labour-market model upon which their policy prescriptions are based.

Keywords: Foreign exchange rates; Ireland--Economic policy; Labor market--Ireland (search for similar items in EconPapers)
Date: 1994-08
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http://hdl.handle.net/10197/1758 First version, 1994 (application/pdf)

Related works:
Journal Article: Exchange Rate Policy When the Labour Market Exhibits Hysteresis (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:199414

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