Hidden Bibliographic Details
| Other authors / contributors: | Pattillo, Catherine A. (Catherine Anne), author.
International Monetary Fund. Research Department, issuing body.
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| ISBN: | 1451895828
9781451895827
1281271489
9781281271488
1462359078
9781462359073
1452717974
9781452717975
9786613778321
661377832X
9781451849332
1451849338
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| ISSN: | 2227-8885
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| Notes: | Includes bibliographical references (pages 48-51).
Restrictions unspecified
Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | A country's terms of trade is one of the most important relative prices in economics, yet economists are largely ignorant of many of its empirical properties. The ratio of an index of a country's export prices to the prices of its imported goods defines the net barter terms of trade (NBTT), which measures the number of units of imports that can be exchanged for a unit of exports. Particularly for commodity-exporting developing countries, movements in the NBTT are key determinants of a country's macroeconomic performance, and have an important impact on real national incomes. For example, arabica coffee is the dominant exportable of Ethiopia. The slump in world arabica coffee prices in 1986-87, largely caused by world production in excess of consumption, resulted in a 40 percent fall in Ethiopia's terms of trade. As imports were about 15 percent of its national expenditure, this adverse movement in its terms of trade resulted in about a 6 percent decline in Ethiopia's real income. Such terms of trade-induced shocks to real incomes in developing countries necessitate a domestic policy response, but in framing an appropriate response, an important question is how long-lasting are typical shocks?
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| Other form: | Print version: Cashin, Paul. Terms of trade shocks in Africa. [Washington, D.C.] : International Monetary Fund, Research Dept., ©2000
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| Standard no.: | 10.5089/9781451895827.001
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