IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Trade policy and exchange rate issues in the former Soviet Union

Listed author(s):
  • Corden, W. Max
Registered author(s):

    The author reviews possible trade and exchange rate policies of the former Soviet Union. Alternative exchange rate regimes, including a monetary union are considered. For Russia, a fixed but adjustable regime is most realistic. Frequent adjustment may be desirable, to prevent the use of trade restrictions to achieve balance of payments objectives. The author examines the need for transitional tariffs, including the argument for a temporary uniform tariff that is higher than the long-run revenue tariff. The temporary uniform tariff is designed to prevent temporary overshooting of the exchange rate. The case for a free trade area is strong because the republics of the former Soviet Union are so highly specialized, but there will be problems if price controls remain and differ among the republics. There could be a free trade area even if there is no monetary union. The author concludes that one approach to trade policy is to have no trade policy - to have completely free trade with convertibility for current account transactions. Some tariffs and export taxes may be justified, at least as second-best policies. If so, the author stresses that four principles be observed: 1) barriers to existing trade between the republics should not be set up; 2) all quantitative control measures should be avoided; 3) tariff and export tax structures should be very simple; and 4) trade policy should be transparent.

    If 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.

    File URL:
    Download Restriction: no

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 915.

    in new window

    Date of creation: 31 May 1992
    Handle: RePEc:wbk:wbrwps:915
    Contact details of provider: Postal:
    1818 H Street, N.W., Washington, DC 20433

    Phone: (202) 477-1234
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:915. 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: (Roula I. Yazigi)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.