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 ?
The pace of the global recovery, commodity volatility, currency fluctuations and beggar thy neighbour thoughts have been of concern for all the G20 powers, especially to Saudi Arabia.
If over coming days countries can resolve what I regard as small differences it would send a huge signal to the world the answer to 2008's crisis is not the beggar thy neighbour protectionate of past crises, but stimulating a world trade agreement," Mr Brown said.
There is an ugly name for Germany's refusal to reflate: beggar thy neighbour currency depreciation.
The same old truisms are as valid today as they were in the 19th century, the driving force of capitalism is profit not philanthropy, and the workforce are the loses in a beggar thy neighbour economy, because it is not profitable to provide jobs or retraining.