Can curtail excess demand through taxes, tariffs, dual exchange rates
{"Image DocumentName": "Can curtail excess demand through taxes, tariffs, dual exchange rates", "Image ImageDescription": "Trade Strategies for Development: Export Promotion versus Import Substitution. Foreign-exchange rates, exchange controls, and the devaluation decision. Currencies of developing countries are overvalued (excess of local demand over available exchange) Can run down reserves. Can curtail excess demand through taxes, tariffs, dual exchange rates. Can use exchange controls. Chronic payments deficits can be. ameliorated by a currency devaluation. Difference between depreciation. and devaluation. Higher import prices result. in an inflationary wage-price spiral. Distributional effects. Figure 8.5 Free-Market and Controlled Rates of Foreign Exchange.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}