Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 1451923562
Total Pages : 46 pages
Book Rating : 4.68/5 ( download)
Book Synopsis Trade Liberalization, Stabilization, and Growth by : International Monetary Fund
Download or read book Trade Liberalization, Stabilization, and Growth written by International Monetary Fund and published by International Monetary Fund. This book was released on 1990-01-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: While inflation slowed sharply in Mexico during 1988, imports surged. Although the growth of domestic absorption could be attributed to a higher fiscal deficit, deriving from sharply higher domestic interest rates, this paper argues that the recovery of private investment was the main driving force, as the private sector saved most of its interest income on public debt. The paper also analyzes some of the costs and benefits associated with trade liberalization. While there is no evidence yet that trade liberalization contributed decisively to price stabilization, it may have played an important role in stimulating exports and investment.