A customs union is enlarged by the addition of one or more new countries. What should be the consequential change in its common external tariff (CET)? The paper attempts to make this question precise and to apply it to the enlargement of the EC. In many simple trade models the optimal CET is...

The paper investigates a model of "exchange rate protection" by two countries. Either or both countries may protect their tradable sectors by maintaining undervalued exchange rates. The mechanism of protection considered involves a country increasing its national saving rate and exporting...