Exchange rate protection


 

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Exchange rate protection

The manipulation of the exchange rate so as to increase the domestic prices of, and demand for, domestically produced goods. Since an undervalued currency stimulates demand for all domestically produced tradable goods, this form of protection, unlike tariff protection, can only be provided to the tradable sector as a whole, not to individual industries.



Similar Matches

Self-sufficiency argument for protection

Self-sufficiency argument for protection

The view that a country is better off providing for its own needs than depending on imports. It may be based on fear that war or foreign governments will interrupt imports. This is a second-best argument, since many policies could provide for that contingency without sacrificing all the gains from trade.


Mortgage payment protection insurance (MPPI)

Mortgage payment protection insurance (MPPI)

An MPPI policy pays your mortgage for you if you become unable to work for an extended period of time, as a result of redundancy, accident, sickness or disability. It should provide enough income to cover all your monthly mortgage expenses. If you have a repayment mortgage, this should be your capital and interest repayment and if you have an interest-only mortgage, the MPPI should cover your interest payment as well as your normal monthly contribution to the investment vehicle that will repay your loan.


Foreign investment argument for protection

Foreign investment argument for protection

The use of protection to attract FDI from abroad. It does work, since much FDI has been motivated by firms trying to get behind a tariff wall to sell their products. In an otherwise nondistorted economy, however, the cost in terms of more expensive goods is higher than the benefit from additional capital.


Court of protection

Court of protection

An office of the Supreme Court whose function is to manage and administer the property and affairs of people who, through mental disorder, are incapable of managing their own financial affairs.


Effective rate of protection

Effective rate of protection

A measure of the protection provided to an industry by the entire structure of tariffs, taking into account the effects of tariffs on inputs as well as on outputs. Letting bij be the share of input i in the value of output j, the ERP of industry j is ERPj = (tj-Sibijtij)/(1-Sibij). Due to Corden (1966).


Further Suggestions

Securities Investor Protection Corporation
Safeguards protection
Protectionism
Effective protection
Externalities argument for protection
Labor standards argument for protection
protection applied
Nominal rate of protection
National defense argument for protection
Domestic distortions argument for protection
Infant industry protection
Marine Mammal Protection Act
Endogenous protection
loan protection policy
Tariff protection
Intellectual property protection
Call protection
Retirement Protection Act of 1994
Noneconomic objectives argument for protection
Building Societies Investor Protection Scheme
Contingent protection
Fairness argument for protection
mortgage protection
Administered protection
Deposit Protection Scheme


 
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