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Terms-of-trade shocks and optimal investment: another look at the Lausen-Metzer effect.

By: Serven, Luis.
Material type: materialTypeLabelBookPublisher: Washington : World Bank, 1995Subject(s): Terms of Trade | Goods -- Trade. -- Goods -- TradeSummary: This paper reexamines the consequences of permanent and transitory changes in the terms of trade in a rational-expectations model of a small open economy.
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Policy Research Working Paper 1424.

This paper reexamines the consequences of permanent and transitory changes in the terms of trade in a rational-expectations model of a small open economy.

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