Year: 1980
Type: report
Abstract: This paper examines the relationship between macroeconomic objectives of controlling inflation and trade-regime objectives in stabilization programs of developing countries.It is seen that there need be, in principle, no close relationship between the two, as a crawling peg exchange-rate policy can prevent inflation from affecting the performance of the foreign sector.In practice, trade regime objectives have been linked with inflation-reducing objectives, often to the detriment of resource allocation and growth.Differences between devaluation under liberalized regimes and under exchange control are also examined.
DOI: 10.3386/w0475
Author: Anne Krueger
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1595702158