External Shocks, the Real Exchange Rate, and Tax Policy

Author/Editor:

Stephen Tokarick

Publication Date:

August 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper uses a computable general equilibrium model of the economy of Trinidad and Tobago to assess the effects of trade liberalization and terms-of-trade shocks on the real exchange rate and the overall fiscal position of the government. The model is also used to evaluate the implications of alternative tax policies designed to offset the increase in the budget deficit of the central government that results from both types of external sector shocks.

Series:

Working Paper No. 1994/088

Subject:

Foreign exchange Imports International trade Real exchange rates Tariffs Taxes Trade liberalization Value-added tax

Notes:

Also published in Staff Papers, Vol. 42, No. 1, March 1995.

English

Publication Date:

August 1, 1994

ISBN/ISSN:

9781451851090/1018-5941

Stock No:

WPIEA0881994

Pages:

36

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