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Macroeconomic policy and trade liberalization : some guidelines (Английский)

Appropriate conduct of macroeconomic policy can play a crucial role in the success of trade liberalization. At a given nominal exchange rate, a trade liberalization that significantly reduces tariffs and quantitative restrictions on imports normally implies a reduction in the general level of domestic prices and wages, especially in the import competing sector. To diminish recessionary effects of domestic price and wage deflation, it is often appropriate...
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