I don't pretend to know much about Peron's policies. He had a basically
agricultural economy without the educational level or the distribution of income
of a Korea. I don't think that he could have accomplished what Korea did
without attacking the structure of land ownership. The US did that for Korea,
by requiring land reform. You see, they did something right -- but only to
reduce the risk of communism. I now long for the cold war.
Anyway, the tax/subsidy issue has to do with the elasticities of the exports.
How much of Argentina's woes can be traced to shifts in its terms of trade?
Brad DeLong wrote:
>
> Since you have read Amsden, you know that the policies that she
> recommends are the complete opposite of those that Peron pursued.
> Amsden believes in subsidizing exports. Peron taxed them. Amsden
> believes in making it easy for export-oriented companies to acquire
> the hard currency they need to buy capital goods. Peron made it
> impossible for export-oriented companies to purchase foreign-made
> capital goods. Amsden believes in an undervalued exchange rate to
> promote exports and increase employment. Peron believed in using
> exchange controls to maintain an overvalued exchange rate to maximize
> terms of trade.
>
> In my view, there is a lot of truth in Amsden's "getting prices
> wrong" position. But as you know, her judgment of Peronist policies
> is much, much harsher and much, much more negative than mine.
>
> Brad DeLong
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
