Self-enforcing trade policy and exchange rate adjustment

Author(s):  
Stéphane Auray ◽  
Michael B. Devereux ◽  
Aurélien Eyquem
2013 ◽  
Vol 51 (1) ◽  
pp. 201-202

Simon J. Evenett of University of St. Gallen reviews, “Trade Policy Disaster: Lessons from the 1930s” by Douglas A. Irwin. The EconLit abstract of this book begins: “Examines the trade policy disaster of the 1930s and considers the logic behind the policy response. Discusses the Great Depression and the rise of protectionism; resolving the trilemma—protection or depreciation; and trade restrictions and exchange rate adjustment—choice and consequences. Irwin is Professor of Economics at Dartmouth College. Index.”


2016 ◽  
Vol 70 (4) ◽  
pp. 797-821 ◽  
Author(s):  
Timm Betz ◽  
Andrew Kerner

AbstractWhy and when do developing countries file trade disputes at the World Trade Organization (WTO)? Although financial conditions have long been considered an important driver of trade policy, they have been largely absent from the literature on trade disputes. We argue that developing country governments bring more trade dispute to the WTO when overvalued real exchange rates put exporters at a competitive disadvantage. This dynamic is most prevalent in countries where large foreign currency debt burdens discourage nominal currency devaluations that would otherwise serve exporters’ interests. Our findings provide an explanation for differences in dispute participation rates among developing countries, and also suggest a new link between exchange rate regimes and trade policy.


Author(s):  
Klaus Schmidt-Hebbel ◽  
Linda Kaltani ◽  
Ibrahim A. Elbadawi

2009 ◽  
Vol 38 (1) ◽  
Author(s):  
UAU Onyebinama ◽  
SAND Chidebelu ◽  
EC Nwagbo

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