@techreport{NBERw1253,
 title = "Tariff Liberalization Policy and Financial Restrictions",
 author = "Joshua Aizenman",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "1253",
 year = "1986",
 month = "April",
 URL = "http://www.nber.org/papers/w1253",
 abstract = {The purpose of this paper is to assess how restrictions on capital mobility affect adjustment to a tariff liberalization policy. This is done by comparing the adlustment process under free and restricted convertibility of foreign assets in a regime where the commercial exchange rate is pegged. It is shown that trade liberalization causes in the short run a larger drop in domestic goods prices and a smaller current account deficit in a regime with restricted convertibility. Similar results apply also for the long-run current account effects of the liberalization: they are smaller under financial restrictions.},
}