Trade Reform Under Partial Currency Convertibility: Some Suggestive Results

International Monetary Fund

No 1988/069, IMF Working Papers from International Monetary Fund

Abstract: This paper discusses the macroeconomic implications of trade reform in the presence of capital account restrictions. The latter is modelled by recognizing prior constraints on free currency convertibility that are imposed via the use of a multiple exchange rate system. The results of the analysis indicate that the preferred sequence of liberalization need not be of the commonly advocated “current account first” variety, and that real depreciation rather than real appreciation is in fact a more probable outcome following domestic tariff liberalization.

Keywords: WP; exchange rate; price level; tariff rate; tariff reduction; price deflation; exchange market; financial rate; Tariffs; Real exchange rates; Exchange rates; Exports; Currency markets; Global (search for similar items in EconPapers)
Pages: 28
Date: 1988-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=29568 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1988/069

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().