TY  - GEN
AU  -   Chapple, Simon
TI  -   Sequence of errors? some notes on the sequencing of liberalization in developing countries
PB  -   UNCTAD
KW  -   TRADE LIBERALIZATION
KW  -   TRADE
KW  -   TRADE POLICY
KW  -   FINANCIAL POLICY
KW  -   ECONOMIC POLICY
KW  -   DEVELOPING COUNTRIES
N2  -   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
ER  -