TY  - BOOK
AU  - Aizenman,Joshua
ED  - National Bureau of Economic Research.
TI  - Tariff Liberalization Policy and Financial Restrictions
T2  - NBER working paper series
PY  - 1983///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - December 1983; Hardcopy version available to institutional subscribers
N2  - 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
UR  - https://www.nber.org/papers/w1253
UR  - http://dx.doi.org/10.3386/w1253
ER  -