Against a background of persistent international economic recession and the failure of traditional monetary and fiscal policies to reverse the decline, the authors consider the central policy concern of whether import controls at an aggregate level can be used to reduce unemployment and raise national output. Taking several models of a small open economy operating under flexible exchange rates, the effects of both permanent and temporary tariffs on the nation's economic welfare and its imports from the rest of the world. The main conclusions from this study are that protectionism can raise aggregate output and alleviate unemployment; the effects on the macroeconomy of conventional demand management policies can be strengthened if the domestic economy is already being protected; a country's economy can be improved by a general tariff; and a general tariff need not provoke retaliation as it can lead to an increased demand for its exports by the domestic economy.
- ISBN10 0631143521
- ISBN13 9780631143529
- Publish Date 26 September 1985
- Publish Status Out of Print
- Out of Print 12 July 1991
- Publish Country GB
- Publisher John Wiley and Sons Ltd
- Imprint Blackwell Publishers
- Format Hardcover
- Pages 240
- Language English