The consensus today is that import-substitution protectionist industrial policy has not served the developing countries' growth ambitions well
This fact proves that policies relying on export-driven growth are the "winning ticket" for these countries.
Although there are many who draw precisely this lesson from the " East Asian Miracle" of the past half-century, such a conclusion does not necessarily follow logically. Although the four HPAEs succeeded in their economic as well as in their export sector growth, they differed among themselves considerably in the degree and manner with which they abjured protectionist policies. In any case, export-promotion policies may distort relative prices to the same extent as import protectionist policies, and hence may lead to the same waste and misallocation of national resources.
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Assume that the dollar price of a basket of goods in the U.S. is $4 and the Indian price for the same basket is 200 rupees. On the other hand, the dollar price of the Indian basket is $20
Given this information, the Indian price for the Indian basket will be: A) $1,200. B) $1,000. C) $200. D) $5.
Some economists argue that
A) discretionary monetary policy is ineffective because of its long identification lag. B) discretionary fiscal policy is ineffective because of its long recognition lag. C) discretionary monetary policy is ineffective because of its long implementation lag. D) discretionary fiscal policy is ineffective because of its long implementation lag.