Beggar-thy-neighbor

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 ?
After all, their worsening dispute increases the risk of a trade war which, coupled with a currency war, would lead to "beggar-thy-neighbor" (that is, lose-lose) outcomes cascading throughout the global economy.
Allianz Global Investors has predicted more protectionism, more inflation, a higher cost of borrowing and divergence between national "winners" and "losers" in a beggar-thy-neighbor world of protectionism.
Another group, citing historical precedent, warns that beggar-thy-neighbor trade measures can quickly spiral out of control, taking a heavy toll on living standards.
Prior to its passage, states took a beggar-thy-neighbor approach to transportation investments, focusing on local routes in hopes of drawing economic activity away from neighboring states.
His "America first" slogan is nothing less than a beggar-thy-neighbor policy.
This is the reason why such moves are referred to as beggar-thy-neighbor policies (Beggar Thy Neighbor, May 20, 2013).
If Trump moves forward with unilateral trade sanctions, a trade war is likely to ensue: one where there will be few winners and the world could move toward beggar-thy-neighbor protectionism of the kind last seen in the 1930s.
He said resisting the beggar-thy-neighbor mentality is a lesson the world learned from the global financial crisis.
They pursue self-serving, beggar-thy-neighbor migration policies-such as building border fences-that further fragment the Union, seriously damage member states, and subvert global human-rights standards.
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.
These should include looser fiscal constraints; more investment; an end to beggar-thy-neighbor wage cuts; and lower taxes on labor.