Difference between revisions 109724560 and 109724561 on dewiki

'''Beggar thy neighbour''', or beggar-my-neighbour, policies seek benefits for one country at the expense of others.  Such a policy attempts to remedy an [[economic]] problem in one country by means which tend to worsen the problems of other countries.  The term was originally devised to characterize policies of trying to cure [[domestic policy|domestic]] [[depression (economics)|depression]] and [[unemployment]] by shifting effective demand away from imports onto domestically produced goods, either through [[tariffs]] and [[quotas]] on [[imports]], or by competitive [[devaluation]].  More recently, beggar thy neighbour policy has taken the form of reducing domestic [[inflation]] through currency [[appreciation]].  This improves the [[terms of trade]] and thus reduces cost-inflationary pressure in the appreciating country but tends to increase cost inflation in the country's trading partners.

"Beggar thy neighbour" strategies of this kind don't only apply to countries: overgrazing provides another example, where the pursuit by individuals or groups of their own interests leads to sub-optimal outcomes.  This dynamic is also known as the "[[tragedy of the commons]]."

The phrase is in widespread use, and is used in such publications as ''[[The Economist]]''<ref>[http://www.economist.com/finance/displaystory.cfm?story_id=8601486 The euro area&apos;s economy | Beggar thy neighbour | Economist.com<!-- Bot generated title -->]</ref> and ''[[BBC News]]''<ref>[http://news.bbc.co.uk/1/hi/business/the_economy/286761.stm BBC News | The Economy | CAP: Beggar thy neighbour<!-- Bot generated title -->]</ref>

== See also ==
* [[Domestic policy]]
* [[Economic policy]]
* [[Monetary policy]]
* [[International trade]]
* [[Balance of trade]]

==References==
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[[Category:International economics]]