Flexible Exchange Rates and Employment Policy |
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Page 510
... output is equal to the sum of domestic expenditure and the trade balance , and the second condition will be ... level of output ( correlated with the level of employment ) and the exchange rate ( defined as the price of foreign currency ...
... output is equal to the sum of domestic expenditure and the trade balance , and the second condition will be ... level of output ( correlated with the level of employment ) and the exchange rate ( defined as the price of foreign currency ...
Page 512
Robert Alexander Mundell. According to the two dynamic postulates , then , the exchange rate and the level of output will be moving in the directions indicated by the arrows in each quadrant from any of the points , A , B , C , or D , in ...
Robert Alexander Mundell. According to the two dynamic postulates , then , the exchange rate and the level of output will be moving in the directions indicated by the arrows in each quadrant from any of the points , A , B , C , or D , in ...
Page 514
Robert Alexander Mundell. EXCHANGE RATE Y F ' F X X ' OUTPUT X ' X ' -F F ' F X FIGURE 4 : The Effect of Monetary Policy on Employment . A reduction in interest rates creates an excess demand for goods and services , shifting XX to X'X ...
Robert Alexander Mundell. EXCHANGE RATE Y F ' F X X ' OUTPUT X ' X ' -F F ' F X FIGURE 4 : The Effect of Monetary Policy on Employment . A reduction in interest rates creates an excess demand for goods and services , shifting XX to X'X ...
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