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Exchange Rate Policy When the Labour Market Exhibits Hysteresis

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  • Barry, Frank

Abstract

This paper analyzes effects of exchange rate changes in a small open economy whose labor market exhibits hysteresis. The model is used to critique the response of the Irish authorities to the exchange rate crisis of 1992-93 that resulted from the sharp depreciation of sterling relative to the deutsche mark and the Irish pound. Copyright 1998 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Barry, Frank, 1998. "Exchange Rate Policy When the Labour Market Exhibits Hysteresis," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(5), pages 532-549, December.
    • Handle: RePEc:bla:manch2:v:66:y:1998:i:5:p:532-49
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    Cited by:

    1. Frank Barry, 2001. "Regional Characteristics, Monetary Union and Regional Income Volatility," Working Papers 200111, School of Economics, University College Dublin.
    2. Frank Barry, 2001. "Openness, the Phillips Curve and the cost of relinquishing the currency," Working Papers 200105, School of Economics, University College Dublin.

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