Trade Policy and Macroeconomic Balance in the World Economy.

The paper explores the relationship between trade policy and current accounts. The effect on the current account of a change in protection at home and then abroad is analyzed, assuming that the exchange rate floats. The 'savings-and-investment approach' is used. It shows that there is no p...

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ग्रंथसूची विवरण
निगमित लेखक: International Monetary Fund
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 1988.
श्रृंखला:IMF Working Papers; Working Paper ; No. 1988/101
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:The paper explores the relationship between trade policy and current accounts. The effect on the current account of a change in protection at home and then abroad is analyzed, assuming that the exchange rate floats. The 'savings-and-investment approach' is used. It shows that there is no presumption that protection would reduce a deficit. With a fixed exchange rate, the effect on savings and investment is brought about by the reduction in absorption that is required to maintain internal balance when restrictions are imposed. A current account deficit or real appreciation may generate protectionist pressures stimulated by 'conservative resistance.'.
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भौतिक वर्णन:1 online resource (22 pages)
स्वरूप:Mode of access: Internet
आईएसएसएन:1018-5941
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