Esprit de Currency
Finance and Development, June 2011, pp. 30-33, 2011
4 Pages Posted: 15 Jun 2011
Date Written: June 2011
This article examines the link between exchange rate policies and trade disputes, from the Great Depression and the Bretton Woods era to the present day. The article notes the absence of IMF and WTO rules on the issue; the interaction between exchange rates and trade policy falls in a gap between the two organizations. Unless the IMF and WTO cooperate to clarify rules and obligations in this area, exchange rate policies will be a continuing source of trade friction between countries and could lead to unilateral action outside multilateral disciplines.
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