pattern of international trade but also their effects on domestic production and investment decisions, their implications for inflation, and the constraints they place on governments’ ability to pursue domestic economic objectives.
Given the breadth of the subject, it is necessary to place certain limitations on the scope of the paper. First, it will be concerned with the implications of fluctuations in exchange rates rather than with levels. The judgment of what constitutes an appropriate exchange rate level, and what are the tradeimplications of indefinite
external demand . Is there a missing generation of exporters? What are the implications for selection into exporting and medium-run trade dynamics?
Protectionism, income inequality, and globalization . Does higher inequality lead to more demand for protectionism? How does higher inequality affect international asset markets? What is the effect of protectionism on global supply chains? What policies can ensure that the gains from globalization are spread more evenly?
Tradeimplications of asset market dynamics . What are the implications for domestic and export market
A : My work on trade focused on three topics: first, welfare and growth effects of trading blocs; second, tradeimplications of the East Asian crisis in the end-90s; and third, the effects of trade on income distribution.
The papers on the first topic were theoretical. In the early 1990s, trade was a very dynamic policy area with the signing of NAFTA, Mercosur, and other trading blocs. The question which intrigued me was how these trading blocs could enhance growth. Was there more learning by doing (and productivity growth) in the country
support a rebound at this juncture, and the links between corporate balance sheet strength and investment are analyzed in a cross-country context in Chapter II. The main medium-term challenge of the Portuguese economy—securing real income convergence with the leading advanced economies—has to take place within an increasingly competitive environment. The latter may be affected by European Union (EU) accession of 10 countries in May 2004, and the potential external tradeimplications are reviewed in Chapter III. Sizable fiscal deficits and a public debt ratio around 60