General Equilibrium Model as an Instrument of Economic Policy: An Analysis of Exchange Rates and Tariffs
Posted: 3 Jul 1997
Date Written: Undated
This paper describes a multisector general equilibrium model built to quantify the impact of alternative scenarios of medium and long run on the performance of the Brazilian economy. To demonstrate how the model can be used as a planning instrument, we imagine that the Brazilian government wants to increase its balance of trade surplus. It is assumed that the government can either increase the import tariffs or can devaluate its currency. The impact of both changes in policy is analyzed in details using recent Brazilian data.
JEL Classification: N76, O23
Suggested Citation: Suggested Citation