Two islands – two monies : the effect of breaking the Sterling link on Anglo-Irish trade

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Title: Two islands – two monies : the effect of breaking the Sterling link on Anglo-Irish trade
Authors: Walsh, Brendan M.
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Date: 2000
Abstract: This paper studies the effect on Anglo-Irish trade of breaking the link between the Irish pound and sterling in 1979. A gravity model is used to explore this issue. No evidence is found of a structural break following the dismantling of the currency union. Nor did the resultant exchange rate volatility have a significant adverse effect on trade. These results do not support the belief that currency unions result in increased trade flows, either directly or by reducing exchange rate volatility.
Funding Details: Not applicable
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP00/06
Keywords: Anglo-irish tradeMonetary policiesCurrencyTrade flowsGravity modelVolatilityExchange rateIrelandSterling
Subject LCSH: Monetary policy--Ireland
Foreign exchange rates--Econometric models--Ireland
Ireland--Commerce--Great Britain
Great Britain--Commerce--Ireland
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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