Exchange rate policy when the labour market exhibits hysteresis

Preprint, Research English OPEN
Frank Barry;
  • Publisher: University College Dublin. School of Economics
  • Subject: Labor market--Ireland | Ireland--Economic policy | Foreign exchange rates; Ireland--Economic policy; Labor market--Ireland | Foreign exchange rates

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 pa... View more
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