Beggar-thy-neighbor

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Beggar-thy-neighbor

An international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners.

Beggar-Thy-Neighbor

A protectionist policy involving the devaluation of one's currency and the construction of tariffs barriers on other countries. The goal of a beggar-thy-neighbor policy is to increase demand for a country's exports (by devaluing the currency and making a country's goods less expensive in other countries) while also reducing demand for the countries imports (by making them more expensive through the tariff barriers). A form of this policy, notably the tariff barrier, was implemented at the beginning of the Great Depression with almost no success. A beggar-thy-neighbor policy in the United States caused other countries to follow suit, resulting in a massive decrease in international trade. This made the Depression worse. See also: Smoot-Hawley Act.
References in periodicals archive ?
These deficiencies can only be remedied by examining its historical development, and this is the task boldly and proficiently undertaken by Beggar Thy Neighbor.
The world central banks are in a race to print the maximum money possible in order to weaken its currencies vis-a-vis the other struggling countries, a beggar thy neighbor premise as a solution and ultimately the market will have to start pricing in that we have seen the low in interest rates as unconventional measures disappear and get replaced by low rates and weak growth as long as the eye can see.
We should not have policies of beggar thy neighbor," as one minister said earlier.
If welfare entitlements are abolished and responsibility for programs such as Aid to Families with Dependent Children devolves to the states, they argue, the result would be more efficient health and welfare policies that foster work and self-reliance, not a contest of beggar thy neighbor.
At most this is a beggar thy neighbor strategy, with a low local income multiplier.