Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280962 
Year of Publication: 
2023
Series/Report no.: 
QUCEH Working Paper Series No. 23-11
Publisher: 
Queen's University Centre for Economic History (QUCEH), Belfast
Abstract: 
This paper studies a natural experiment in macroeconomic history: the Irish bank strike of 1966, which led to the closure of the major commercial banks for three months. We use synthetic control to estimate how the economy would have evolved had the strike not happened. We find that economic activity slowed, deviating by 6% from the counterfactual path. Narrative evidence not only supports this finding, but also 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.
Subjects: 
Banks
Ireland
macroeconomy
post-war
JEL: 
E32
E44
G21
N14
N24
Document Type: 
Working Paper

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