Abstract
Analyses whether trade policies such as import tariffs and export taxes have unambiguous effects on the trade balance. Shows that a temporary tariff raises the real interest rate and thereby reduces spending which, in turn, improves the trade balance. Also shows that a temporary export tax affects the real interest rate in the opposite direction and worsens the trade balance.-from Authors
Original language | English |
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Journal | University of Stockholm, Institute for International Economic Studies, Seminar Paper |
Volume | 220 |
State | Published - 1982 |