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The Special Safeguard Mechanism was a key issue in the July 2008 failure to reach agreement in the World Trade Organization negotiations under the Doha Development Agenda. It includes both price and quantity-triggered measures. This paper uses a stochastic simulation model of the world wheat market to investigate the effects of policy makers implementing policies based on the Special Safeguard Mechanism rules. As expected, implementation of the quantity-triggered measures is found to reduce imports, raise domestic prices, and boost mean domestic production in the Special Safeguard Mechanism regions. However, rather than insulating countries that use it from price volatility, it would actually increase domestic price volatility in developing countries, largely by restricting imports when domestic output is low and prices high. This paper estimates that implementation of the quantity-triggered measures would shrink average wheat imports by nearly 50 percent in some regions, with world wheat trade falling by 4.7 percent. The price measures discriminate against low price exporters - many of whom are developing countries - and tend to increase producer price instability.

Access to Markets --- Average price --- Climate Change Economics --- Competitiveness --- Domestic markets --- Emerging Markets --- International Economics and Trade --- International markets --- Macroeconomics and Economic Growth --- Market price --- Market volatility --- Markets and Market Access --- Price adjustment --- Price comparison --- Price variation --- Price volatility --- Private Sector Development --- Producer price --- Producer prices --- Sale --- Substitution --- Supplier --- Suppliers --- Supply curve --- Supply curves --- Trade Policy --- World market --- World markets

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Macroeconomics is the study of the economy as a whole and of work and saving choices of individual economic agents from which macroeconomic activity emerges. This book takes an integrative approach to that topic, showing how short-run and long-run forces operate simultaneously to determine the behavior of key economic indicators such as employment and real, inflation-adjusted GDP.

Macroeconomics. --- aggregate demand --- aggregate supply --- baseline scenario --- chain-weight method --- classical tradition --- Cobb-Douglas production function --- compensated supply curve --- consumption tax --- contractive monetary and fiscal policy --- cost of capital --- demand multiplier --- depreciation rate --- diminishing marginal rate of substitution --- excess demand --- excess supply --- expansive monetary and fiscal policy --- flat tax --- frictional unemployment --- full employment --- golden rule of economic growth --- Great Contraction --- gross national product --- income effect --- individual equilibrium --- interest parity condition --- intertemporal elasticity of substitution --- INUS --- Keynesian scenario --- labor force participation rate --- labor income --- Laffer curve --- leisure --- longrun aggregate supply --- macro foundations --- marginal effective tax rate --- marginal product --- marginal propensity to consume --- marginal propensity to produce --- marginal rate of substitution --- marginal utility --- micro foundations, money --- natural unemployment rate --- net foreign investment --- new classical economics --- nominal rate of return --- non-accelerating inflation rate of unemployment --- non- accelerating inflation rate of labor-force participation --- output supply multiplier --- Phillips curve --- potential GDP --- present value --- purchasing power parity --- rate of time preference --- real rate of return --- replacement rate --- repressed inflation --- repressed wages --- saving rate --- self-reliance rate --- short-run aggregate supply --- stabilization policies --- steady state of economic growth --- structural unemployment --- substitution effect --- supply side economics --- uncompensated supply curve --- unemployment rate