Flexible Exchange Rates and Employment Policy |
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Page 510
... system to two equilibrium conditions in two variables , the level of output ( correlated with the level of ... dynamic stability . On the dynamic postulates that income rises or falls depending on whether there is excess demand or excess ...
... system to two equilibrium conditions in two variables , the level of output ( correlated with the level of ... dynamic stability . On the dynamic postulates that income rises or falls depending on whether there is excess demand or excess ...
Page 512
Robert Alexander Mundell. According to the two dynamic postulates , then , the exchange rate and the level of output ... system , will be eliminated by a depreciation of the home currency , and this in turn will create excess demand in ...
Robert Alexander Mundell. According to the two dynamic postulates , then , the exchange rate and the level of output ... system , will be eliminated by a depreciation of the home currency , and this in turn will create excess demand in ...
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