Trade Liberalization, Macroeconomic Adjustment, and Welfare Unifying Trade and Macro Models
| Author/creator | Choudhri, Ehsan U. Author |
| Other author | Faruqee, Hamid Author |
| Other author | Tokarick, Stephen Author |
| Format | Electronic |
| Publication Info | Washington : International Monetary Fund |
| Description | 63 p. |
| Supplemental Content | Full text available from Ebook Central - Academic Complete |
| Summary | Annotation Trade liberalization leads to long-run gains, but it can also involve costly short-run macroeconomic adjustment. the paper explores the relative importance of these effects within a dynamic general equilibrium model that captures key elements of both international trade and macroeconomic models. the welfare effect of trade liberalization is decomposed into a steady-state efficiency gain and a transitional loss associated with wage-price stickiness. Our estimates show that the transitional loss is small relative to the steady-state gain, and tends to be lower under flexible as compared to fixed exchange rates. We also show that the loss can be reduced further by a flexible price-level targeting policy rule. |
| Access restriction | Available only to authorized users. |
| Technical details | Mode of access: World Wide Web |
| Genre/form | Electronic books. |
| ISBN | 9781451910179 |
| ISBN | 1451910177 (E-Book) Active Record |
| Stock number | 00013468 |