This paper uses three models of a small open economy to analyze the effects of terms of trade and exchange rate changes … factors model is developed and used to investigate how an exogenous worsening of the intern.ationa1 terms of trade affect …

contemplated a trade liberalization process that would create a low and uniform tariff structure. In this paper I review the …

that for most nations the adjustment has been highly recessive. Next, the potential role of trade reforms in securing the …

-product firms live forever, and the large firms invest in innovation in order to enlarge their product spans. All firms export. I …

of import tariffs, and external terms of trade shocks. In the case of import tariffs, a distinction is made between …

how the temporary term's of trade disturbances affect the path of real exchange rates and the current account. Changes in … the internal terms of trade (due to tariff changes) and to the external terms of trade are considered. The model is … current account in period 1 are derived. The way in which temporary and permanent external terms of trade shocks will affect …

In this paper we investigate the relation between tariff changes, terms of trade changes and the equilibrium real … wisdom that establishes that a tariff hike will always result in a real appreciation, while a terms of trade worsening will …

We analyze the way in which Latin American countries have adjusted to commodity terms of trade (CTOT) shocks in the …, effectively lowering its volatility. We also show that relatively small increases in the average holdings of reserves by Latin … alternative to fiscal or currency policies for relatively trade closed countries and economies with relatively poor institutions …

We study unanticipated tariffs on imports of intermediate goods in a setting with firm-to-firm supply relationships … free trade. Once they are in place, the home government surprises with an input tariff. This can lead to renegotiation with … deterioration in the terms of trade. The welfare implications of a tariff are ambiguous in this second-best setting, but plausible …