Flexible Exchange Rates and Employment Policy |
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Page 510
... XX curve traces the locus of exchange rates and outputs at which the demand for goods and services is equal to the supply of goods and services . This schedule has a positive slope because an increase in output creates an excess supply ...
... XX curve traces the locus of exchange rates and outputs at which the demand for goods and services is equal to the supply of goods and services . This schedule has a positive slope because an increase in output creates an excess supply ...
Page 512
... XX exceeds the slope of FF in the former , whereas the slope of FF exceeds the slope of XX in the latter . A necessary condition for stability ' is therefore that the slope of XX exceed the slope of FF . In what follows I assume that ...
... XX exceeds the slope of FF in the former , whereas the slope of FF exceeds the slope of XX in the latter . A necessary condition for stability ' is therefore that the slope of XX exceed the slope of FF . In what follows I assume that ...
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