Open AccessThe Theory and Practice of Commercial Policy: Departures from Unified Exchange Rates by Jagdish Bhagwati. International Finance Section, Depart¬ment of Economics, Princeton University, 1968.
Author(s) -
Frank C. Child
Publication year - 1969
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v9i2pp.224-226
Subject(s) - economics , argument (complex analysis) , section (typography) , subsidy , exchange rate , neoclassical economics , macroeconomics , keynesian economics , monetary economics , market economy , business , advertising , biochemistry , chemistry
In this small volume, Bhagwati paints a broad canvas but issparing in detail. He defines "unified exchange rates" to include notonly the existence of a single rate of exchange applicable to allexternal transactions but also the absence of any taxes, subsidies,premia, quotas, or, administered prices in both internal and externalmarkets. In short, a "departure from unified exchange rates" is anypolicy or circumstance which departs from the conditions of theperfectly competitive model. Bhagwati writes in the neo-classicaltradition. However, as the argument progresses, it is clear that he isconcerned about policies of interference with external trade.