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 ?
So what can be done to address the situation without getting into a beggar-thy-neighbor, retaliatory free-for-all?
What if Eugene lobbied separately for state and federal transportation funding, perhaps employing beggar-thy-neighbor arguments?
Economy ministers and central bankers for the IMF's 187 member states meet Friday as anger grows about beggar-thy-neighbor currency policies that are skewing world trade.
Was not the IMF set up in 1944 with the explicit mandate to prevent the beggar-thy-neighbor and protectionist policies of the 1930s?
The chancellor plays an essential role in higher education by preventing program duplication and beggar-thy-neighbor competition among the seven universities.
This is what makes today's beggar-thy-neighbor policies so destructive: though some countries will eventually have to absorb the surpluses and capital, each country is trying to avoid them.
The laudable intentions of the founders at the 1944 Bretton Woods conference were directed toward avoiding the tremendous shortcomings in the international system in the post-World War I period when the lack of effective multilateral mechanisms allowed governments to practice beggar-thy-neighbor policies, resulting in declining world trade hurting employment and living standards in many countries.
The temptation in this type of recession, however, is to use the beggar-thy-neighbor policy by devaluing the currency.
In the current climate of anxiety and uncertainty, policymakers must ensure strong communication and coordination, avoid beggar-thy-neighbor policies, and guard against protectionism.
Germany refuses to accept that its beggar-thy-neighbor economic policies -- reflected in its massive current-account surpluses -- are both a cause of the eurozone crisis and a major impediment to resolving it.
The list of policy mistakes is almost endless: Interest-rate hikes by the European Central Bank in July 2008 and again in April 2011; imposing the harshest austerity on the economies facing the worst slump; authoritative treatises advocating beggar-thy-neighbor competitive internal devaluations; and a banking union that lacks an appropriate deposit-insurance scheme.