So the country (like so many others in the East and South of Europe) must now make a major shift from non-tradeables
to tradeables, and this in the context of a currency peg (and a significant level of external indebtedness) is not going to be an easy task.
For example, if productivity in the tradeables sector of the economy grows faster than productivity in the non-tradeables
sector, it will push-up wages in the economy, including the non-tradeables
sector (David Faulkner and Konstantin Makrelor, 2008).
Inflation pressures are expected to lessen, although price trends for some non-tradeables
inflation remain of concern.
Although consumer price inflation is currently within the 1-3% target range, non-tradeables
inflation remains substantially in excess of this.
He rejects any all-inclusive explanation, including the oft-mentioned phenomenon of "Dutch Disease," in which resource rents effectively displace other export sectors and transfer domestic production to less sustainable non-tradeables
, as well as a host of other single causal factors in the economic, political or social structures of the OPEC states.
In Japan, where publishers work a good deal more quickly (the Japanese non-tradeables
sector, it will be recalled, is supposed to be lacking in competition and mired in inefficiency), Britain's Resurrection: Japan's Failure and the book under review appeared almost simultaneously.
Iquitos and Belem, the region's other two major rubber ports, experienced a similar pattern of urban economic development, accompanied by all of the accoutrements of a burgeoning non-tradeables
sector in a boom-time economy.
inflation also diminished but remained relatively high, at an estimated 4 per cent in 1997.
This paper develops a general equilibrium model of North-South trade with different wage setting regimes and a non-tradeables
However, if capital inflow is used for the production of nontradeables then the conversion of foreign exchange in domestic currency Will increase the money supply and as a result the prices of non-tradeables
will go up causing an appreciation of the real exchange rate.
A closer look at the development over the last twenty years, including subsectors of manufacturing and services, and grouping the various sectors into tradeables and non-tradeables
, does reveal a noteworthy change in the Finnish production structure: despite the sharp fall in the share of agriculture (defined as a "non-tradeable
" sector due to agricultural protectionism), the output and employment shares of the tradeables sector, exposed to foreign competition, were lower at the end of the 1980s than at the beginning of the 1970s.
inflation has not yet shown signs of abating.