EFFECTS OF CURRENCY ADJUSTMENTS GIVEN FREE TRADE, TRADE RESTRICTIONS AND CROSS COMMODITY SUBSTITUTION

Comparative static models are developed which measure changes in equilibrium prices and quantities traded of an exchange rate change. Effects are determined for a free trade model and compared with that incorporating trade restrictions similar to those employed by the European community. Quantity changes are found to exceed price changes. Exchange rate effects are found to be greater if trade is restricted.


Issue Date:
1976
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/13961
Total Pages:
26
Series Statement:
Staff Paper P76-35




 Record created 2017-04-01, last modified 2017-04-04

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