Beggar-thy-neighbor

(redirected from Beggar-Thy-Neighbor Policies)

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 second class of problems is so-called beggar-thy-neighbor policies: actions that produce economic benefits at home only to the extent they harm others - and generate global inefficiency in the process.
Disparate tax rules among different countries have resulted in close to a zero-sum game for national governments, which are forced to pursue beggar-thy-neighbor policies to secure a bigger slice of a shrinking pie.
International rules preventing the use of beggar-thy-neighbor policies are therefore necessary to avert trade wars.
This is the reason why such moves are referred to as beggar-thy-neighbor policies (Beggar Thy Neighbor, May 20, 2013).
Moreover, China is not by any stretch of the imagination a country that pursues beggar-thy-neighbor policies by keeping its own market closed to foreign goods and services.
The Depression, from which the Western economies seemed to have been rescued in part by the war itself, was of course fresh in the minds of their leaders.(5) As was widely recognized at the time, one cause of that global Depression was the beggar-thy-neighbor policies that the countries pursued.
At the hearing, Snow said the United States opposes ''any beggar-thy-neighbor policies,'' reiterating that the U.S policy is ''very very clear -- currency values ought to be set in open, competitive markets.''
The IMF beggar-thy-neighbor policies continued to deepen public frustrations with an unpopular government in the country and gradually led the economy to a stage where it is virtually living on cash injections from international lenders and donors.
leadership and responsible treatment of our currency's reserve role in the global economy by avoiding the disruptive, destabilizing, and ultimately destructive beggar-thy-neighbor policies witnessed in the last century.
Too much global political capital nowadays is wasted on harmonizing beggar-thyself policies (particularly in the areas of trade and financial regulation), and not enough is spent on beggar-thy-neighbor policies (such as macroeconomic imbalances).
The allies, particularly the United States and Great Britain, were determined that post-WWII international institutions would avoid the beggar-thy-neighbor policies of the 1930s.
In the run-up to World War II, beggar-thy-neighbor policies and rampant protectionism ensued-with Britain leaving the gold standard in 1931 in response to a run on the pound.