A graphic explanation on how a tax on exports neutralizes the Dutch disease without costs to exporters


Autoria(s): Bresser-Pereira,Luiz Carlos
Data(s)

01/12/2012

Resumo

The adequate way of neutralizing the Dutch disease is the imposition of a variable tax on the export of the commodity that originates the disease. If such tax is equivalent to the "size" of the Dutch disease, it will shifts to the right its supply curve of the commodity in relation to the exchange rate, giving the existing domestic supply and the international demand, the exchange rate will depreciate at the value of the tax, and the equilibrium exchange rate will move from the "current" to the "industrial" equilibrium.

Formato

text/html

Identificador

http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572012000400010

Idioma(s)

en

Publicador

Editora 34

Fonte

Revista de Economia Política v.32 n.4 2012

Palavras-Chave #exchange rate #Dutch disease #tax on exports
Tipo

journal article