Flexible Exchange Rates and Employment Policy |
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Page 509
... foreign exchange or gold . Tariffs , trade controls , and export subsidies are likely to worsen employ- ment and output in all those situations in which , with a fixed exchange rate , they would improve employment and output . Moreover ...
... foreign exchange or gold . Tariffs , trade controls , and export subsidies are likely to worsen employ- ment and output in all those situations in which , with a fixed exchange rate , they would improve employment and output . Moreover ...
Page 510
... exchange rate ( defined as the price of foreign currency in terms of domestic currency ) . The system is represented in Figure 1 . The XX curve traces the locus of exchange rates and outputs at which the demand for goods and services is ...
... exchange rate ( defined as the price of foreign currency in terms of domestic currency ) . The system is represented in Figure 1 . The XX curve traces the locus of exchange rates and outputs at which the demand for goods and services is ...
Page 512
... exchange rate ( the price of foreign currency ) would have to fall : this means that the XX schedule ( Figure 3 ) shifts down and to the right . The new equilibrium , determined by the intersection of the original FF schedule and the ...
... exchange rate ( the price of foreign currency ) would have to fall : this means that the XX schedule ( Figure 3 ) shifts down and to the right . The new equilibrium , determined by the intersection of the original FF schedule and the ...
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