Choudhri, Ehsan U; Faruqee, Hamid; Tokarick, Stephen - In: IMF Economic Review 59 (2011) 3, pp. 455-487
It has long been argued that the presence of nominal rigidities could cause adverse macroeconomic adjustment to trade liberalization and thus reduce the benefits of freer trade. The paper explores the welfare cost of macroeconomic adjustment within the framework of new open economy macroeconomic...