ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

Is Real Depreciation Expansionary? The Case of Ireland

Yu Hsing

Correspondence: Yu Hsing,

Department of Management & Business Administration, Southeastern Louisiana University, USA

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Applying aggregate demand and aggregate supply model and based on a quarterly sample during 2003.Q1 – 2015.Q1, this paper finds that Ireland’s aggregate output is positively associated with real appreciation, German real GDP, the real stock price and labor productivity and negatively influenced by government debt as a percent of GDP, the real lending rate and the expected inflation rate. The insignificant coefficient of the real oil price indicates that Ireland is energy efficient and that a higher real oil price would not impact its aggregate output negatively. Recent euro depreciation would not help Ireland’s aggregate output, and recent decrease in government debt as a percent of GDP would help increase aggregate output.


  Exchange rates; Government debt; Oil prices; Stock prices; Productivity


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