Saving distortions undervalued exchange rates and protectionism

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dc.contributor.authorCostinot, Arnaud
dc.contributor.authorLorenzoni, Guido
dc.contributor.authorWerning, Iván
dc.date.accessioned2019-11-01T00:07:08Z
dc.date.available2019-11-01T00:07:08Z
dc.date.issued2015
dc.descriptionPolicies that distort domestic saving decisions have general equilibrium effects on trade flows and the real exchange rate. In particular increasing domestic savings keeps the real exchange rate undervalued depressing imports and increasing exports. However there are important differences between saving distortions and standard protectionist trade policies like tariffs. We use a simple twoperiod model to illustrate these differences by comparing a saving subsidy which keeps the exchange rate undervalued and a temporary import tariff. Both policies reduce current imports. However the first policy entails short-run welfare losses for the domestic country and short-run welfare gains for its trading partners the second policy has opposite welfare effects.
dc.file.nameBCCh-sbc-v20-p143_158
dc.format.pdf
dc.format.extentSección o Parte de un Documento
dc.format.mediump. 143-158
dc.identifier.isbn978-956-7421-47-3
dc.identifier.urihttps://hdl.handle.net/20.500.12580/3900
dc.language.isoeng
dc.publisherBanco Central de Chile
dc.relation.ispartofSeries on Central Banking Analysis and Economic Policies no. 20
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 Chile*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/cl/*
dc.subjectTIPO DE CAMBIOes_ES
dc.subjectPROTECCIONISMOes_ES
dc.subjectAHORRO E INVERSIÓNes_ES
dc.titleSaving distortions undervalued exchange rates and protectionism
dc.type.docArtículo

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