Price determination in Ireland - effects of changes in exchange-rates and exchange-rate regimes
Citation:Tim Callan, John Fitzgerald, 'Price determination in Ireland - effects of changes in exchange-rates and exchange-rate regimes', Economic and Social Research Institute, Economic and Social Review, Vol.20, No. 2, January 1989, 1989, pp165-188
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This paper finds that the wholesale price of Irish manufacturing output is closely tied to foreign prices in the long run; domestic wage costs generally do not exert a significant influence. In the short run changes in foreign currency prices affect Irish prices more rapidly than do changes in exchange rates. There is evidence of a change in pricing behaviour on Ireland's entry into the EMS. German output prices are now as important as UK prices in determining Irish prices.
Publisher:Economic & Social Studies
Type of material:Journal article
Series/Report no:Economic and Social Review
Vol.20, No. 2, January 1989