European Monetary and Fiscal Policies
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Abstract
Abstract
Abstract This paper studies the macroeconomic impact of the Irish bank strike of 1966, which led to the closure of the major commercial banks for 3 months. We collect a variety of new evidence, such as high‐frequency macro data, economic forecasts, micro data and narrative sources. Our findings suggest that the bank strike was associated with a shortfall in economic activity that punctuated a decade of robust growth. The qualitative evidence depicts the struggles of households and firms managing a credit crunch, a liquidity shock, and rising transaction costs. This case study highlights the importance of banks for economic performance.
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@article{Horgan2026Banks,
title = {Banks and the economy: Evidence from the Irish bank strike of 1966},
author = {Emma Horgan and Seán Kenny and Jason Lennard},
journal = {The Economic History Review},
year = {2026},
doi = {10.1111/ehr.70153},
url = {https://doi.org/10.1111/ehr.70153}
}FAQ
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