IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v32y2000i7p933-944.html
   My bibliography  Save this article

Macroeconomic shocks under alternative exchange rate regimes: the Irish experience

Author

Listed:
  • Liam Gallagher

Abstract

The paper investigates the nature of Irish macroeconomic shocks and their correlation with German and UK shocks. A restricted VAR of real output and prices is employed to distinguish aggregate demand and supply shocks for the three countries. To identify the role of Irish exchange rate policy two periods are considered: the preERM period and the ERM period. The results indicate that while the change in exchange rate policy had an effect on the nature of demand and supply shocks, the ERM did not have the effect of increasing the correlation of Irish shocks with Germany or the UK. Evidence of substantial asymmetric shocks with Germany and the UK exist. Thus, Ireland as a member of the EMU faces increased cost of adjustment to asymmetric macroeconomic shocks.

Suggested Citation

  • Liam Gallagher, 2000. "Macroeconomic shocks under alternative exchange rate regimes: the Irish experience," Applied Economics, Taylor & Francis Journals, vol. 32(7), pages 933-944.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:933-944
    DOI: 10.1080/000368400322264
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322264
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368400322264?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baker, Terence J. & FitzGerald, John & Honohan, Patrick, 1996. "Economic Implications for Ireland of EMU," Research Series, Economic and Social Research Institute (ESRI), number PRS28, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dermot Hodson, 2003. "The Exchange Rate as an Adjustment Mechanism - A Structural VAR Approach to the Case of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 34(2), pages 151-172.
    2. Luciana Reis & Roberto Meurer & Sergio Da Silva, 2010. "Stock returns and foreign investment in Brazil," Applied Financial Economics, Taylor & Francis Journals, vol. 20(17), pages 1351-1361.
    3. Hui-Boon Tan & Lee-Lee Chong, 2008. "Choice of exchange rate system and macroeconomic volatility of three Asian emerging economies," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 1(2), pages 167-179.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wissema, Wiepke & Dellink, Rob, 2007. "AGE analysis of the impact of a carbon energy tax on the Irish economy," Ecological Economics, Elsevier, vol. 61(4), pages 671-683, March.
    2. J. Peter Neary, 2006. "Measuring Competitiveness," The Economic and Social Review, Economic and Social Studies, vol. 37(2), pages 197-213.
    3. John Fitz Gerald, 1999. "The Irish economic Boom," Post-Print hal-03579357, HAL.
    4. repec:hal:spmain:info:hdl:2441/15akhtaemj8749vcnir0pnd8rm is not listed on IDEAS
    5. Egon Smeral, 1999. "Europäische Währungsunion und internationaler Tourismus," WIFO Monatsberichte (monthly reports), WIFO, vol. 72(3), pages 187-195, March.
    6. Neary, J.P. & Thom, D.R., 1996. "Punts, Pounds and Euros: In Search of an Optimum Currency Area," Papers 96/24, College Dublin, Department of Political Economy-.
    7. Bermingham, Colin, 2005. "Employment and Inflation Responses to an Exchange Rate Shock in a Calibrated Model," Research Technical Papers 2/RT/05, Central Bank of Ireland.
    8. Duffy, David & FitzGerald, John & Kearney, Ide & Smyth, Diarmaid, 1999. "Medium-Term Review 1999-2005, No. 7," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR07, June.
    9. FitzGerald, John & Kearney, Ide & Bergin, Adele & Conefrey, Thomas & Duffy, David & Timoney, Kevin & Znuderl, Nusa, 2013. "Medium-Term Review: 2013-2020, No. 12," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR12, June.
    10. Conall MacCoille & Daniel McCoy, 2002. "Economic Adjustment Within EMU - Ireland’s Experience," The Economic and Social Review, Economic and Social Studies, vol. 33(2), pages 179-193.
    11. Patrick Honohan & Anthony J. Leddin, 2006. "Ireland in EMU - More Shocks, Less Insulation?," The Economic and Social Review, Economic and Social Studies, vol. 37(2), pages 263-294.
    12. John FitzGerald, 1999. "Understanding Ireland's Economic Success," Papers WP111, Economic and Social Research Institute (ESRI).
    13. Colin Bermingham, 2006. "Employment and Inflation Responses to an Exchange Rate Shock in a Calibrated Model," The Economic and Social Review, Economic and Social Studies, vol. 37(1), pages 27-46.
    14. Dermot Hodson, 2003. "The Exchange Rate as an Adjustment Mechanism - A Structural VAR Approach to the Case of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 34(2), pages 151-172.
    15. Lapp, Susanne & Schatz, Klaus-Werner & Scheide, Joachim & Solveen, Ralph, 1996. "Geldpolitik regt Konjunktur in den Industrieländern an," Open Access Publications from Kiel Institute for the World Economy 1691, Kiel Institute for the World Economy (IfW Kiel).
    16. John Fitz Gerald, 2001. "Managing an Economy Under EMU: The Case of Ireland," The World Economy, Wiley Blackwell, vol. 24(10), pages 1353-1371, November.
    17. John FitzGerald, 2000. "Ireland's Failure-And Belated Convergence," Papers WP133, Economic and Social Research Institute (ESRI).
    18. FitzGerald, John & Keeney, Mary J. & McCarthy, Niamh & O'Malley, Eoin & Scott, Susan, 2005. "Aspects of Irish Energy Policy," Research Series, Economic and Social Research Institute (ESRI), number PRS57, June.
    19. Susan Scott, 1996. "Social Welfare Fuel Allowances...To Heat the Sky?," Papers WP074, Economic and Social Research Institute (ESRI).
    20. Frank Barry, 2001. "Regional Characteristics, Monetary Union and Regional Income Volatility," Working Papers 200111, School of Economics, University College Dublin.
    21. Kelly, John, 2003. "The Irish Pound: From Origins to EMU," Quarterly Bulletin Articles, Central Bank of Ireland, pages 89-115, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:32:y:2000:i:7:p:933-944. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.