Portfolio equilibrium and monetary policy in Ireland
Citation:
Anthony Leddin, 'Portfolio equilibrium and monetary policy in Ireland', Economic and Social Research Institute, Economic and Social Review, Vol.17, No. 2, January, 1986, 1986, pp133-146Download Item:
Abstract:
The introduction of exchange controls in 1978 and the exchange rate uncertainty associated with Ireland's entry into the European Monetary System (EMS) in 1979 gave rise to the possibility of a reduction in the degree of capital mobility between Irish and foreign financial markets and as a consequence a greater autonomy in the conduct of Irish monetary policy. The purpose of this paper is to evaluate Irish monetary policy in terms of a pre- and post-EMS entry framework by estimating an adaptation of Kouri and Porter's (1974) portfolio balance model of an open economy. The principal finding is that the Central Bank has engaged in sterilisation policies since EMS entry but that this policy would prove ineffective if pursued for any indefinite period of time.
Author: Leddin, Anthony
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Economic & Social StudiesType of material:
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Economic and Social ReviewVol.17, No. 2, January, 1986
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0012-9984Metadata
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