Dangers for Ireland of an Emu Without the U.K.: Some Calibration Results
Economic and Social Review
Posted: 29 Jan 1998
Abstract
This paper presents a small-open-economy model calibrated to Irish data. The model can be used for many purposes. It is applied here to the EMU debate. It comes close to replicating the employment effects of sterling weakness reported in the recent ESRI study. When the assumptions on wage flexibility are changed in an arguably more plausible direction, though, we find that the employment effects are magnified considerably. Given the narrowness of the outcome in the ESRI's judgment, our results provide support for remaining outside until the U.K. joins.
JEL Classification: F31, F33
Suggested Citation: Suggested Citation
Barry, Frank, Dangers for Ireland of an Emu Without the U.K.: Some Calibration Results
. Economic and Social Review, Available at SSRN: https://ssrn.com/abstract=49728
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