Comparative Effects of Devaluation and Import Controls on Domestic Prices

based on any proper theoretical model. The consequent, often bitter, controversies are exemplified in the various discussions of the New Cambridge macroeconomics in Brunner and Meltzer (1978). The reason is also familiar: the difficulty lies in formulating a tractable model that can address the issues at stake. It is the aim of this paper to construct such a model, and to put it through its paces by performing the desired comparisons in some simple contexts. Once the working of the model is properly understood from these simple exercises, more complex and realistic circumstances can be analysed in the same way, and the added difficulties are only algebraic. Our analysis applies to both quantitative import controls and to tariffs, since the two types of policy are equivalent under the assumptions used in this paper. Furthermore, while we have chosen to concentrate on import control, it is easy to apply the analysis to the case of export control. Minimumquantity constraints on exports are equivalent in their allocative effects to export subsidies, which are commonly used policy instruments in many coun

Allocative efficiency · Construct (python library) · Control (management) · Currency · Devaluation · Econometrics · Economics · Macroeconomics · Market economy · Microeconomics · Simple (philosophy) · Subsidy · Computer Science · Global trade and economics

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