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By Robert Z. Aliber

The decade of the Nineteen Seventies was once one in every of turbulence in overseas financial preparations - the alternate charges fluctuated via a variety, nationwide cost degrees greater than doubled fueled in part via numerous oil expense shocks, and the exterior accounts of the constructing international locations elevated from $120 billion to

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Neary (1982) 'Booming Sector and DeIndustrialization in a Small Open Economy', Seminar Paper No. 195, Institute for International Economic Studies, Stockholm, February. Deardorff, Alan V. and Robert M. Stem (1982) 'Tariff and ExchangeRate Protection under Fixed and Flexible Exchange Rates in the Major Industrialized Countries', in J. Bhandari and B. Putnam (eds) Economic Interdependence and Flexible Exchange Rates (Cambridge, Ma: MIT Press). ', Brookings Papers on Economic Activity, I, pp. 143-85.

29 This erroneous characterization rested in part on a confusion of traded and tradable goods; for a large country like the United States, openness is consistent with low ratios of exports and imports to total domestic shipments. Closely linked was the failure to anticipate the importance of exchange rate changes for domestic prices. Early and crude estimates of the inflationary impact of dollar devaluation assumed that only the prices of imported goods would be affected. Analysts had been misled in part by the traditional elasticities approach to exchange rate changes.

1977) 'Commercial Policy Under Alternative Exchange Rate Regimes', Canadian Journal of Economics, 10, May, pp. 218-32. Branson, William H. (1981) 'OPEC Lending, LDC Growth, and US Trade', NBER Working Paper No. 791, November. Branson, William H. (1982) 'Economic Structure and Policy for External Balance', paper prepared for the NBER/IMF Conference on Policy Interdependence, August 31. Brock, William A. and Stephen P. Magee (1980) 'Tariff Formation in a Democracy', in J. Black and B. Hindley (eds) Current Issues in Commercial Policy and Diplomacy (London: Trade Policy Research Centre).

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