Trade reform, policy uncertainty, and the current account (English)

Rapid trade liberalization is often followed by a surge of imports and a deterioration in the current account. The macroeconomic counterpart of this is a decline in private savings. This paper discusses the impact of policy uncertainty on private savings. The author uses the Ordinal Certainty Equivalence approach to establish that trade policy uncertainty by itself will further reduce savings if: (a) there is a positive risk aversion; and (b) the...

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Author

Van Wijnbergen,Sweder;
Document Date
1990/10/31
Document Type
Policy Research Working Paper
Report Number
WPS520
Volume No
1
Total Volume(s)
1
Disclosure Date
2010/07/01
Doc Name
Trade reform, policy uncertainty, and the current account
Keywords
private saving

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Citation

Van Wijnbergen,Sweder.

Trade reform, policy uncertainty, and the current account (English). Policy, Research, and External Affairs working papers ; no. WPS 520 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/936051468764346214

Trade reform, policy uncertainty, and the current account (English)

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