Flexible Exchange Rates and Employment Policy |
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Page 510
... balance of pay- ments . The first condition will obtain when output is equal ... schedule has a positive slope because an increase in output creates an ... internal - balance schedule and the foreign - balance schedule have positive ...
... balance of pay- ments . The first condition will obtain when output is equal ... schedule has a positive slope because an increase in output creates an ... internal - balance schedule and the foreign - balance schedule have positive ...
Page 512
... schedule ( Figure 3 ) shifts down and to the right . The new equilibrium , determined by the intersection of the original FF schedule and the new internal balance schedule , X'X ' , is at Q ' , where the level of output is higher and ...
... schedule ( Figure 3 ) shifts down and to the right . The new equilibrium , determined by the intersection of the original FF schedule and the new internal balance schedule , X'X ' , is at Q ' , where the level of output is higher and ...
Page 514
... internal and external balance schedules . The effect on the internal balance schedule is similar to that of fiscal policy , shifting it downward and to the right . It also affects the balance of payments directly and so shifts the foreign ...
... internal and external balance schedules . The effect on the internal balance schedule is similar to that of fiscal policy , shifting it downward and to the right . It also affects the balance of payments directly and so shifts the foreign ...
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