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Irish inflation : appropriate policy responses

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Download thomr_article_pub_004.pdf72.15 KB
Author(s)
Thom, Rodney 
O'Rourke, Kevin H. 
Uri
http://hdl.handle.net/10197/706
Date Issued
2000
Date Available
04T15:29:02Z December 2008
Abstract
This article argues that the cost increasing, supply side approach cannot adequately explain the current Irish inflation. It suggests that the correct model is one that is based on excess demand fuelled by continuing economic growth and demand-side shocks, including nominal exchange rate depreciation and lax budgetary policy. Evidence is presented to suggest that inflationary pressures have been building up in the economy for longer than is generally appreciated. As for appropriate policy responses, these include nominal wage increases above those agreed under the PPF but exclude tax cuts which, at the time of writing, seem likely to emerge in the December 2000 Budget.
Type of Material
Journal Article
Publisher
Irish Banking Federation
Journal
Irish Banking Review
Issue
Winter 2000
Start Page
33
End Page
47
Copyright (Published Version)
Irish Bankers' Federation 2000
Subject – LCSH
Inflation (Finance)--Ireland
Ireland--Economic policy
Web versions
http://www.tcd.ie/Economics/staff/orourkek/ibrwinter00.pdf
Language
English
Status of Item
Peer reviewed
ISSN
0021-1060
This item is made available under a Creative Commons License
https://creativecommons.org/licenses/by-nc-sa/1.0/
Owning collection
Economics Research Collection
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