Flexible Exchange Rates and Employment Policy |
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Page 510
... FF schedule traces the locus of exchange rates and output along which the balance of payments is in equilibrium . This curve also has a positive slope because an increase in the price of foreign exchange improves the balance of payments ...
... FF schedule traces the locus of exchange rates and output along which the balance of payments is in equilibrium . This curve also has a positive slope because an increase in the price of foreign exchange improves the balance of payments ...
Page 512
... FF in the former , whereas the slope of FF exceeds the slope of XX in the ... schedule . " At the initial exchange rate and level of output , a budget ... schedule ( Figure 3 ) shifts down and to the right . The new equilibrium ...
... FF in the former , whereas the slope of FF exceeds the slope of XX in the ... schedule . " At the initial exchange rate and level of output , a budget ... schedule ( Figure 3 ) shifts down and to the right . The new equilibrium ...
Page 514
... F F ' F X FIGURE 4 : The Effect of Monetary Policy on Employment . A reduction in interest rates creates an excess ... schedule is similar to that of fiscal policy , shifting it downward and to the right . It also affects the balance of ...
... F F ' F X FIGURE 4 : The Effect of Monetary Policy on Employment . A reduction in interest rates creates an excess ... schedule is similar to that of fiscal policy , shifting it downward and to the right . It also affects the balance of ...
Common terms and phrases
assume balance of payments capital movements central bank changes commercial policy creates an excess depreciation dynamic system effective under flexible effects of fiscal eliminated employment and output equilibrium exceed the slope excess demand excess supply exchange rate-output complex exports F X FIGURE FF schedule fiscal policy fixed exchange rates flexible exchange rates foreign balance schedule foreign exchange foreign trade multiplier foreign-balance schedule improve employment income expansion increase employment increase in income increase in output increased investment interest rate internal balance schedule internal-balance schedule Keynesian Laursen-and-Metzler leakage through foreign level of employment level of output locus of exchange ment monetary policy multiplier effect Policy on Employment positive slope price of foreign quadrants RATE X F reduce capital imports situation in Figure slope of FF slope of XX spending on home STABILITY CONDITIONS terms of trade Theory of Employment XX curve XX exceed XX line XX schedule θα ах