Pakistan Institute of Development Economics

PDR

THE PAKISTAN DEVELOPMENT REVIEW 

The Theory and Practice of Commercial Policy: Departures from Unified Exchange Rates by Jagdish Bhagwati. International Finance Section, Depart¬ment of Economics, Princeton University, 1968.

In this small volume, Bhagwati paints a broad canvas but is sparing in detail. He defines “unified exchange rates” to include not only the existence of a single rate of exchange applicable to all external transactions but also the absence of any taxes, subsidies, premia, quotas, or, administered prices in both internal and external markets. In short, a “departure from unified exchange rates” is any policy or circumstance which departs from the conditions of the perfectly competitive model. Bhagwati writes in the neo-classical tradition. However, as the argument progresses, it is clear that he is concerned about policies of interference with external trade.

Frank C. Child

Please download the PDF to view it:

Download PDF