Shock Versus Gradualism in Models of Rational Expectations : The Case of Trade Liberalization /
This paper provides a new argument for 'shock' versus 'gradualism' in the implementation of trade policies. In the simple context of a small open economy with rational expectations, we consider the comparative welfare effects of eliminating an import tariff either immediately as...
| প্রধান লেখক: | |
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| অন্যান্য লেখক: | |
| বিন্যাস: | পত্রিকা |
| ভাষা: | English |
| প্রকাশিত: |
Washington, D.C. :
International Monetary Fund,
1997.
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| মালা: | IMF Working Papers; Working Paper ;
No. 1997/122 |
| অনলাইন ব্যবহার করুন: | Full text available on IMF |
| সংক্ষিপ্ত: | This paper provides a new argument for 'shock' versus 'gradualism' in the implementation of trade policies. In the simple context of a small open economy with rational expectations, we consider the comparative welfare effects of eliminating an import tariff either immediately as an unanticipated shock, or gradually over a preannounced length of time. The gradualist policy introduces a distortion in consumption-accumulation decisions and generates welfare costs. And if the gradual change is extended over 'too long' a period, these costs may exceed the long-run benefits of liberalization. |
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| উপাদানের বিবরণ: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| দৈহিক বর্ননা: | 1 online resource (20 pages) |
| বিন্যাস: | Mode of access: Internet |
| আইএসএসএন: | 1018-5941 |
| প্রবেশাধিকার: | Electronic access restricted to authorized BRAC University faculty, staff and students |