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- W2510171586 abstract "Abstract In general equilibrium under constant returns to scale and perfect competition the normative theory of international trade is examined for a monetary, not a barter, economy. Persons exhibit flow demand for real balances just as they do for commodities because money provides well-being salient utility insofar as its content is desire fulfilment, satisfaction or usefulness. For such a monetary small open economy, an additional terms-of-trade effect or inflationary effect of a tariff is identified, which drives many unusual results including the sub-optimality of free trade, unless the exchange rate is flexible and the commodities and real balances are weakly separable." @default.
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- W2510171586 date "2006-12-01" @default.
- W2510171586 modified "2023-10-03" @default.
- W2510171586 title "The gains from trade in a small monetary economy" @default.
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- W2510171586 doi "https://doi.org/10.1080/09638190601037427" @default.
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