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It is common in expositions of international trade theory to start by imagining two isolated countries, which then are allowed to begin trade with each other.
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Key Phrases - Statistically Improbable Phrases (SIPs):
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predictable excess returns, integrated economy approach, shadow floating exchange rate, strategic trade policy models, structural exchange rate models, loan supply schedule, cooperative optimum, foreign exchange risk premium, endogenous speculative bubbles, disaggregated price data, exact price index, exchange rate hand, permanent productivity shock, complete markets economy, fixed labor input, expected currency appreciation, exchange rate target zones, conduct parameter, minimum reserve level, international comovement, home central bank, tariff game, bond economy, intertemporal approach, equilibrium tax rate
Key Phrases - Capitalized Phrases (CAPs):
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American Economic Review, Journal of Political Economy, New York, European Economic Review, Journal of Monetary Economics, Cambridge University Press, University of Chicago Press, Quarterly Journal of Economics, Bretton Woods, Journal of Finance, Princeton University, United Kingdom, Review of Economic Studies, Economic Journal, Canadian Journal of Economics, Brookings Papers, Journal of Economic Perspectives, Oxford Economic Papers, World War, Elsevier Science, University of California, North American, Basil Blackwell, Journal of Money, International Trade Commission
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