Chapple, Simon
Sequence of errors? some notes on the sequencing of liberalization in developing countries - UNCTAD Geneva August 1990 - 26 p. ills.
Liberalization is on the agenda for many developing countries. One question for policy makers is: in which order should markets be liberalized? Existing theories of the sequence of liberalization are examined. The fiscal balance/financial markets/current account/capital account sequence generally recommended by orthodox theory neglects possible, real exchange-rate rises caused both by reductions in the fiscal deficit and by financial deregulation. These real exchange-rate rises may harm the tradable goods sector and therefore the country's external balance. Existing sequencing theories also neglect the question of an appropriate wages policy; this is examined further.
General
TRADE LIBERALIZATION
TRADE
TRADE POLICY
FINANCIAL POLICY
ECONOMIC POLICY
DEVELOPING COUNTRIES
00405-GG
Sequence of errors? some notes on the sequencing of liberalization in developing countries - UNCTAD Geneva August 1990 - 26 p. ills.
Liberalization is on the agenda for many developing countries. One question for policy makers is: in which order should markets be liberalized? Existing theories of the sequence of liberalization are examined. The fiscal balance/financial markets/current account/capital account sequence generally recommended by orthodox theory neglects possible, real exchange-rate rises caused both by reductions in the fiscal deficit and by financial deregulation. These real exchange-rate rises may harm the tradable goods sector and therefore the country's external balance. Existing sequencing theories also neglect the question of an appropriate wages policy; this is examined further.
General
TRADE LIBERALIZATION
TRADE
TRADE POLICY
FINANCIAL POLICY
ECONOMIC POLICY
DEVELOPING COUNTRIES
00405-GG