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.

Verfasser: Bresser-Pereira, Luiz Carlos
Dokumenttyp: Text
Erscheinungsdatum: 2012
Schlagwörter: Dutch disease / Exchange rate / Tax on exports / Imposto de exportação / Desenvolvimento econômico
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-28582210
Datenquelle: BASE; Originalkatalog
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Link(s) : http://hdl.handle.net/10438/25219