Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Exchange Rate Parity for Trade and Development

Exchange Rate Parity for Trade and Development

Yotopoulos, Pan A.

Hardcover

EconomicsInvesting & Finance

ISBN10: 052148216X
ISBN13: 9780521482165
Publisher: Cambridge University Press
Published: Oct 27 1995
Pages: 344
Weight: 1.42
Height: 1.10 Width: 6.29 Depth: 9.27
Language: English
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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