The employment implications of trade and exchange rate policy

Abstract

Foreign trade and exchange rate policies are often too complicated for the non-economist to understand and even some economist find the connection between these policies and employment obscure. Yet trade and exchange rate policies can be very important in determining the pattern of industrialization, and this pattern has profound implications for employment. We will examine how these policies can influence industrialization and employment, how they do in practice exert their influence and how they ought to be used to promote development. We will then briefly consider the institutional, political economic, basis of these policies.