Flexible Exchange Rates and Employment Policy |
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Page 510
... 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 consideration , and that output at home is perfectly elastic ...
... 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 consideration , and that output at home is perfectly elastic ...
Page 513
... rates is apparent . There are two reasons for this : first , the increased investment occasioned by the lower interest rate has a greater multiplier effect on employ- ment , as in the case of fiscal policy , because leakage through ...
... rates is apparent . There are two reasons for this : first , the increased investment occasioned by the lower interest rate has a greater multiplier effect on employ- ment , as in the case of fiscal policy , because leakage through ...
Page 514
... interest rate , the import content of investment spending , and the responsiveness of capital movements to the interest rate . V. COMMERCIAL POLICY AND EMPLOYMENT Define commercial policy to be any policy which restricts imports or pro ...
... interest rate , the import content of investment spending , and the responsiveness of capital movements to the interest rate . V. COMMERCIAL POLICY AND EMPLOYMENT Define commercial policy to be any policy which restricts imports or pro ...
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