The Exchange Rate and Inflation in Argentina: A Classical Critique of Orthodox and Heterodox Policy Prescriptions
In this paper we present an alternative framework to neoclassical theory of international trade and exchange rate determination. Our model, inspired in the classical tradition, provides support for the assertion that an exchange rate policy aiming to improve national competitiveness and to bring about a sustained trade surplus is a viable option. In fact, the success of this strategy does not depend on the effectiveness of monetary sterilization —as many argentinean heterodox authors claim— but on the ability to overcome the boundaries imposed by the evolution of the domestic wage rate and the potential emergence of competitive devaluations. In the particular case of Argentina, the introduction of export taxes on land-intensive commodities, in which the economy has absolute advantages, brings an additional policy tool that can make both the exchange rate target and the workers claims consistent.
(This abstract was borrowed from another version of this item.)
Volume (Year): 39 (2010)
Issue (Month): 2 (July)
|Contact details of provider:|| Web page: http://www.springer.com|
Web page: http://socialeconomics.org/
|Order Information:||Web: http://link.springer.com/journal/12143|
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.:
- Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
- Bliss, C. J., 1975. "Capital Theory and the Distribution of Income," Elsevier Monographs, Elsevier, edition 1, number 9780720436044 edited by Bliss, C. J..
- P. Garegnani, 1970. "A Reply," Review of Economic Studies, Oxford University Press, vol. 37(3), pages 439-439.
- Cassel, Gustav, 1927. "The Rate of Interest, The Bank Rate, and the Stabilization of Prices," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 42, pages 511-529.
- James Tobin, 1963. "Commercial Banks as Creators of 'Money'," Cowles Foundation Discussion Papers 159, Cowles Foundation for Research in Economics, Yale University.
- Garegnani, Pierangelo, 1984. "Value and Distribution in the Classical Economists and Marx," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 291-325, June.
- P. Garegnani, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution," Review of Economic Studies, Oxford University Press, vol. 37(3), pages 407-436.
- Parrinello, Sergio, 2006. "National competitiveness and absolute advantage in a global economy," MPRA Paper 30807, University Library of Munich, Germany.
- Eatwell, John, 1977. "The Irrelevance of Returns to Scale in Sraffa's Analysis," Journal of Economic Literature, American Economic Association, vol. 15(1), pages 61-68, March.
- L. Wray, 2006. "Keynes's Approach to Money: An Assessment After Seventy Years," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(2), pages 183-193, June.
- William Poole, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, Oxford University Press, vol. 84(2), pages 197-216.
When requesting a correction, please mention this item's handle: RePEc:spr:fosoec:v:39:y:2010:i:2:p:145-169. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.