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A note on the impact of stabilization in international trade

Author

Listed:
  • Carlos Henrique Rocha
  • Eraldo Sérgio Barbosa

Abstract

This note presents a situation in which the government surprises rational agentsby implementing an anti-inflation policy in place of one that fights against recession. As aresult, a pressure towards the balance of payments superavit is obtained during the impactperiod. That conclusion stems from the surprise of the new government policy under a “leaningagainst the wind” policy regime. JEL Classification: F32; F62.

Suggested Citation

  • Carlos Henrique Rocha & Eraldo Sérgio Barbosa, 1995. "A note on the impact of stabilization in international trade," Brazilian Journal of Political Economy, Center of Political Economy, vol. 15(4), pages 609-615.
  • Handle: RePEc:ekm:repojs:v:15:y:1995:i:4:p:609-615:id:1262
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1262/1247
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    More about this item

    Keywords

    Liberalization; stabilization; balance of payments;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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