Show simple item record

dc.contributor.authorHonohan, Patrick
dc.contributor.authorLeddin, Anthony J.
dc.date.accessioned2011-10-11T15:02:36Z
dc.date.available2011-10-11T15:02:36Z
dc.date.issued2006
dc.identifier.citationHonohan, Patrick; Leddin, Anthony J. 'Ireland in EMU: more shocks, less insulation?'. - Economic & Social Review, Vol. 37, No. 2, Summer/Autumn, 2006, pp. 263-294, Dublin: Economic & Social Research Institute
dc.identifier.issn0012-9984
dc.identifier.otherJEL E42
dc.identifier.otherJEL E63
dc.identifier.urihttp://hdl.handle.net/2262/60020
dc.descriptionAn earlier version was presented at the Conference on Macroeconomic Perspectives in Honour of Brendan M. Walsh, held at University College Dublin on 7 October, 2005
dc.description.abstractDespite anchoring the Irish monetary system to a common zone-wide exchange rate and interest rate, EMU has triggered sizeable exchange rate and especially interest rate shocks to the Irish economy (albeit not appreciably greater than those experienced under previous exchange rate regimes). Interest rate movements have deviated widely from what a standard Taylor monetary policy rule would have counselled ? though here again the deviations have been no worse in this regard than those of the previous regime. The most important shock has been associated with the large and sustained initial fall in nominal interest rates as EMU began. Through mechanisms which we formally model, the interest rate fall has had a lasting effect on property prices, construction activity and the capacity of the labour market to absorb sizeable net immigration, despite a sharp deterioration in wage competitiveness since 2002. As the long drawn-out impact of this shock subsides, the failure of the wage-bargaining system promptly to claw back the loss of competitiveness resulting from exogenous exchange rate movements is increasingly likely to show up in weaker aggregate employment performance.en
dc.language.isoen
dc.publisherEconomic & Social Studies
dc.relation.ispartofVol.XX, No. XX, Issue, Year
dc.sourceEconomic & Social Reviewen
dc.subjectEuropean Monetary Unionen
dc.subjectIrelanden
dc.subjectEconomic shocksen
dc.subjectInterest ratesen
dc.subjectMonetary systemen
dc.titleIreland in EMU: more shocks, less insulation?
dc.typeConference Paper
dc.typeJournal Article
dc.publisher.placeDublinen


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record