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

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.

The value of the exchange rate and the Dutch disease

This paper revisits the original (2008) paper on the Dutch disease, which defined it by the existence of two exchange rate equilibriums (the current and the industrial exchange rate equilibriums). Its novelty is in claiming that, as we have a value and a market price for each good or service, we also have a value and a market price for foreign money. The value is the cost plus reasonable profit corresponding to the exchange rate that makes competitive the country's competent business enterprises; the nominal exchange rates floats around the value according to the demand and supply of foreign money. This basic distinction of the exchange rate in terms of value and in terms of price allows us to understand that the two equilibriums are defined in value terms, and opens room for a clear distinction of the policies that affect the value from the ones that affect the market price of the exchange rate.

Man O'War, le cheval qui a battu les records du monde : [photographie de presse] / [Agence Rol]

Référence bibliographique : Rol, 59717

Lettre de Mlle Sainval, cadette, à la Comédie-Française, du 14 janvier 1784. - Lettre de Mme Vestris à la Comédie-Française, en réponse à celle de Mlle Sainval. (24 janvier.)

Comprend : Lettre... à la Comédie françoise, en réponse à celle de Mlle Sainval [, 24 janvier 1784]

Recueil de pièces relatives aux contestations entre les Auteurs dramatiques et les Comédiens français. (1780).

Contient : Adresse à la Reine, etc., au sujet d'un secours demandé en faveur d'une petite-fille de Racine ; États de recettes et dépenses de la Comédie française (1770-1779), etc

État des livres, reliés, brochés et en feuilles, qui seront vendus à la Chambre syndicale des libraires & imprimeurs, mercredi 14 juin 1780, à trois heures précises de relevée & jours suivans

[Catalogue de libraire. Paris. Duchesne, Veuve de Nicolas-Bonaventure. 1780]

Etat des livres, dont la vente se fera en la Chambre royale & syndicale des libraires & imprimeurs de Paris, le 20 ou 21 octobre 1780, à trois heures de relevée.

[Catalogue de libraire. Paris. Dehansy, Honoré-Clément. 1780]