Strategic Devaluation, Trade and Political Convenience
AbstractThe economies of developed countries have, since 2007, experienced the most significant and persistent period of economic malaise since the 1930s. Domestic economic policies have failed to revive sustained economic growth and, as a result, unemployment remains at levels that voters find difficult to accept. In addition, without tax revenue-enhancing growth, government deficits persist, and borrowing to finance the cumulative deficits has become increasingly difficult for some countries. With domestic policies largely exhausted, but economic growth elusive, policy makers have been considering external policies as a means to stimulate their economies. Trade protectionism and strategic devaluation are potential policies. The lessons of the 1930s regarding the dangers of beggar thy neighbour protectionism appear to retain their currency with policy makers, but the same may not be true for strategic devaluation. The article outlines the likely poor efficacy of strategic devaluation as a politically convenient mechanism to escape the current economic malaise.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.
Volume (Year): 13 (2012)
Issue (Month): 1 ()
Contact details of provider:
Postal: Suite 820, 410 22nd Street East, Saskatoon SK, S7K 5T6
Phone: (306) 244-4800
Fax: (306) 244-7839
Web page: http://www.esteycentre.com/
More information through EDIRC
Cooperative solution; Great Depression; retaliation; strategic devaluation; trade; Financial Economics; Institutional and Behavioral Economics; International Relations/Trade; Political Economy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kerr, William A., 2009. "Recession, International Trade and the Fallacies of Composition," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.