Flexible Exchange Rates and Employment Policy |
From inside the book
Results 1-3 of 4
Page 510
... assume that capital imports and exports depend on the interest rate at home and abroad , but that the latter are parameters determined by monetary policy . I further assume that foreign incomes are given during the period under ...
... assume that capital imports and exports depend on the interest rate at home and abroad , but that the latter are parameters determined by monetary policy . I further assume that foreign incomes are given during the period under ...
Page 512
... assume that the stability conditions are satisfied and make use of the informa- tion thus gained to determine the effects of fiscal , monetary , and commercial policy on the level of employment and output . III . FISCAL POLICY AND ...
... assume that the stability conditions are satisfied and make use of the informa- tion thus gained to determine the effects of fiscal , monetary , and commercial policy on the level of employment and output . III . FISCAL POLICY AND ...
Page 513
... assume that it takes the form of a reduction ( increase ) in interest rates , and that its main impact is to increase investment and reduce capital imports . The reduction in interest rates increases the excess demand for domestic goods ...
... assume that it takes the form of a reduction ( increase ) in interest rates , and that its main impact is to increase investment and reduce capital imports . The reduction in interest rates increases the excess demand for domestic goods ...
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