Abstract
In a recent article in this Journal, Chambers and Just criticize partial equilibrium models of trade which attempt to show the effect of currency devaluation on domestic prices. Three of their main points are (a) cross-price effects cannot be ignored, (b) the response of domestic prices to exchange rate disturbances may (but need not) be different from their response to foreign price disturbances, and (c) demand systems derived from weakly separable utility functions may be useful in constructing trade models. We read the Chambers-Just note with ambivalence because we have made all of
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