Papers on International Economics - Trade and Exchange Rates
* Book Review: "Globalization and its Discontents, by G.
[Journal of Libertarian Studies, 18 (1), Winter 2004, pp. 89-99
* Book Review: "The Wind of the Hundred Days – How
Mismanaged Globalization, by J. Bhagwati” [Journal of
für Nationalökonomie, 74, 3, 2001, pp. 325-328] download.
* An explanation of the dynamics of protectionism [Open
Review, 11, 3, July 2000, 279-293] download
policy has been the rule during
century. Traditional theories however fail to provide convincing
about why the nature of trade policy has changed over time, and on why
protectionist pressures have not always been successful. This paper
that change in the nature and intensity of protectionism depends on the
deviation of economic performance from expectations, on the demand for
institutional change, and on the size of the existing distortions. This
view is then applied in order to shed new light on the role of trade
before and after World War II.
* Exchange rate management in
Europe: a Public-Choice Perspective (with J. Macey), [Journal des
et des Etudes Humaines, 2/3, Juin-Septembre 1995, 259-275;
Review of Law and Economics, 16, 2, June 1996, 195-209. ]
The paper presents a public-choice
of the existing exchange-rate regimes in transition economies, with
reference to Eastern Europe. The links between policy making, rent
and exchange-rate regimes are thus examined in detail from a
point of view, and then compared with the existing empirical evidence.
Some comments about the role of the West and of international
are also put forward.
* Partial adjustment without tears. A
for the tolar (with J. Mencinger) [Empirica, 22, 1995, 83-101]
The design of a monetary system in
was influenced by the heritage of persistent shortages of foreign
This and other considerations prompted a decision that a new currency -
the Tolar - was to float on two separate foreign exchange markets: a
for current-account transactions, and a market for capital-account
Actual developments differed considerably from forecasts, and the Tolar
turned out to be stronger than expected.
The aim of the paper is to present, estimate and test a simple
describing the behaviour of the Tolar in the first period of high
and to assess its relevance for the real world. Exchange-rate movements
are analyzed as if they were adjusting to the expected price level. The
results imply that the dealers do not wait for new data on prices to be
disclosed. They try to anticipate the likely effects of inflation on
exchange rate. It is shown that interventions by the Central Bank did
affect the SIT/DM exchange rate appreciably. The answer to the question
whether other Eastern European countries could have benefitted from the
"short-run story of the tolar" is inconclusive, if not negative.