Abstract

Economic sanctions against the Soviet Union, as a response to its policies in Poland and Afghanistan, have been criticized as ineffective. Optimal sanctions can be derived as strategies which solve a dynamic mathematical game subject to uncertainty. They are analyzed here using a macroeconomic model of the Soviet economy and show that the Soviet Union is vulnerable to induced foreign exchange shortages. Current policies exploit that weakness.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.