01688cas a2200241 a 4500 AALejournalIMF009964 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451948455 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Trade Policy and Macroeconomic Balance in the World Economy. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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.'. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/101 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/101/001.1988.issue-101-en.xml IMF e-Library