An amended Irish monetary system

Abstract

To understand the Irish monetary system it is necessary to know something of its development and of the general economic position of the Irish economy. It is a truism, but a very important one, that the Irish economy is highly dependent on exports and imports for its well-being. In 1955, to take a particular year, it?s Gross National Product at factor cost was #476 million, and its external payments and receipts on current account amounted to #232.6 million and #197.1 million respectively, or 48.9 per cent and 41.4 per cent respectively of the Gross National Product. Looking a little more closely at the external position we find that 59.6 per cent of total imports in value terms came from the United Kingdom and 89 per cent of exports went to it. Other years might be taken but a similar pattern would emerge. In other words, the Irish economy is an open one and bound to be subject to external economic influence. In particular its economic life is closely interlinked with that of the United Kingdom and it must expect to feel the impact of general economic conditions in that country. It is with this background continually in mind that we must carry on our discussion.