Sequence of errors? some notes on the sequencing of liberalization in developing countries
By: Chapple, Simon
Publisher: UNCTAD ; Geneva ; August 1990Description: 26 p; illsSubject(s): TRADE LIBERALIZATION | TRADE | TRADE POLICY | FINANCIAL POLICY | ECONOMIC POLICY | DEVELOPING COUNTRIESSummary: 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.| Item type | Current location | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|
| Grey Literature | National Documentation Centre General Collection | 00405-GG (Browse shelf) | Available | 2631 |
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.
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