The issue of using domestic over imported goods (import substitution) and adjusting accordingly the agricultural policy has become critical following the Russian food import ban on specified types of agricultural products, commodities and food products from the United States, the European Union,...

The model is motivated by data showing that the Australian production of local manufactures is hurt by depreciations and invigorated by appreciations. The paper briefly presents such evidence and then proceeds to a theoretical analysis. The model aims at capturing short-to-medium run exchange...