01771cas a2200241 a 4500 AALejournalIMF010010 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451955347 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Temporary Import Tariffs, the Real Exchange Rate and the Current Account. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (36 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 In this paper a general equilibrium intertemporal model with optimizing consumers and producers is developed to analyze how the imposition of a temporary import tariff affects the path of real exchange rates and the current account. The model is completely real, and considers a small open economy that produces and consumes three goods each period. It is shown that, without imposing rigidities or adjustment costs, interesting paths for the equilibrium real exchange rate can be generated. In particular 'equilibrium overshooting' can be observed. Precise conditions under which a temporary import tariff will worsen the current account in period 1 are derived. Several ways in which the model can be extended are discussed. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/080 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/080/001.1988.issue-080-en.xml IMF e-Library