Tariff Liberalization Policy and Financial Restrictions /
Aizenman, Joshua.
Tariff Liberalization Policy and Financial Restrictions / Joshua Aizenman. - Cambridge, Mass. National Bureau of Economic Research 1983. - 1 online resource: illustrations (black and white); - NBER working paper series no. w1253 . - Working Paper Series (National Bureau of Economic Research) no. w1253. .
December 1983.
The purpose of this paper is to assess how restrictions on capital mobility affect adjustment to a tariff liberalization policy. This is done by comparing the adlustment process under free and restricted convertibility of foreign assets in a regime where the commercial exchange rate is pegged. It is shown that trade liberalization causes in the short run a larger drop in domestic goods prices and a smaller current account deficit in a regime with restricted convertibility. Similar results apply also for the long-run current account effects of the liberalization: they are smaller under financial restrictions.
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Mode of access: World Wide Web.
Tariff Liberalization Policy and Financial Restrictions / Joshua Aizenman. - Cambridge, Mass. National Bureau of Economic Research 1983. - 1 online resource: illustrations (black and white); - NBER working paper series no. w1253 . - Working Paper Series (National Bureau of Economic Research) no. w1253. .
December 1983.
The purpose of this paper is to assess how restrictions on capital mobility affect adjustment to a tariff liberalization policy. This is done by comparing the adlustment process under free and restricted convertibility of foreign assets in a regime where the commercial exchange rate is pegged. It is shown that trade liberalization causes in the short run a larger drop in domestic goods prices and a smaller current account deficit in a regime with restricted convertibility. Similar results apply also for the long-run current account effects of the liberalization: they are smaller under financial restrictions.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.