Tariffs, The Terms of Trade and Domestic Prices in a Monetary Economy: A Further Analysis
The purpose of this note is to re-examine the recent Batra-Ramachandran (B-R, 1980) investigation of the effects of tariffs in a monetary economy. In particular, we show that under flexible exchange rates the Metzler condition is necessary and sufficient for avoiding the Metzler tariff paradox, as in the usual barter model, thus extending B-R's discussion. Furthermore, we show that the Metzler condition is sufficient for both a tariff-induced appreciation of the exchange rate (under flexible exchange rates) and a tariff-induced payments surplus (under fixed exchange rates). These results can be contrasted with B-R's negative contention that such effects are "indeterminate". This note thus reconciles B-R's results with those we reported elsewhere (Anderson and Takayama 1978).
The theory of tariffs in a monetary economy
Abstract A two country two commodity model of international trade in a monetary context is utilized for the re-evaluation of the classical propositions in international trade theory which are usually derived under barter. A comparison of results under alternative exchange rate regimes is given. The effects of tariffs on the balance of payments and on domestic price levels is also studied.
The chromosomes of Chrysanthemum,
NEW varieties of the garden chrysanthemum arise primarily from seed. They are propagated vegetatively and many give rise to bud sports in sequence and in parallel to give whole families of varieties. The original sports would naturally be chimras and it is not surprising therefore that they often revert to the previous type. Whereas some varieties sport continually from the time of their origin, others remain stable for many years. Those considered in this account do, mostly, sport freely. Since varieties may remain stable for a considerable number of years and then suddenly sport it is probable that all varieties possess the ability to sport. The origin of bud sports is unpredictable. Some confusion in naming has arisen as the same or similar sports have occurred and been propagated in different places under different names. Consequently there are, for example, several forms similar to, but not identical with, the original Favourite Supreme raised by Messrs A. G. Vinten. It might well be that each individual variety would be better termed a sub-family to include all its minor variants. The different Chrysanthemum sports are described in scattered numbers of the R.H.S. Journal—more particularly, for the Favourite family, in Vol. 63, 1938, pp. 139-141. The object of this study is to discover the cause of sporting.