Flexible Exchange Rates and Employment Policy |
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Page 512
... exchange rate - output complex from any point such as V : it will either proceed directly to equilibrium or get trapped in one of the two quadrants in which both arrows point towards equilibrium . In Figure 2 , on the other hand , the ...
... exchange rate - output complex from any point such as V : it will either proceed directly to equilibrium or get trapped in one of the two quadrants in which both arrows point towards equilibrium . In Figure 2 , on the other hand , the ...
Page 513
... complicated with many side effects , depending in part on how it is ... export of capital , or reduced import of capital , further lowers the exchange rate and permits a ... EXCHANGE RATE Y F ' F X X ' OUTPUT Exchange Rates and Employment 513.
... complicated with many side effects , depending in part on how it is ... export of capital , or reduced import of capital , further lowers the exchange rate and permits a ... EXCHANGE RATE Y F ' F X X ' OUTPUT Exchange Rates and Employment 513.
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