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Exchange Rate Parity for Trade and Development

by Pan A. Yotopoulos
Save 17% Save 17%
Current price ₹8,182.00
Original price ₹9,819.00
Original price ₹9,819.00
Original price ₹9,819.00
(-17%)
₹8,182.00
Current price ₹8,182.00

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Book cover type: Hardcover
  • ISBN13: 9780521482165
  • Binding: Hardcover
  • Subject: N/A
  • Publisher: Cambridge University Press
  • Publisher Imprint: Cambridge University Press
  • Publication Date:
  • Pages: 344
  • Original Price: GBP 64.0
  • Language: English
  • Edition: N/A
  • Item Weight: 645 grams
  • BISAC Subject(s): Economics / Theory

This study extends recent theories of incomplete markets to investigate empirically the appropriate balance between the market and the state in the trade relations between developed and developing countries. The conclusion is that in an ideal world government intervention in foreign exchange and trade is necessary in developing countries in the early stages, and inevitably decreases as development occurs. Rationing of foreign exchange prevents a soft currency distortion that commonly afflicts developing countries and can turn comparative advantage trade into competitive devaluation trade, with severe losses of income and welfare. The author finds that the level of underdevelopment narrowly circumscribes and conditions the extent to which free-market, free-trade, laissez-faire can be beneficial, contrary to the mainstream policy paradigm as currently applied. The analysis and tests draw on empirical research from 70 countries and four extended country studies to confirm the usefulness and validity of the theoretical framework.

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