Flexible Exchange Rates and Employment Policy |
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Page 511
... X The XX lines trace the conditions for internal balance , and the FF schedules the conditions for external balance . The situation in Figure 1 is stable because the slope of XX exceeds the slope of FF , and the situation in Figure 2 is ...
... X The XX lines trace the conditions for internal balance , and the FF schedules the conditions for external balance . The situation in Figure 1 is stable because the slope of XX exceeds the slope of FF , and the situation in Figure 2 is ...
Page 512
... slope of XX exceeds the slope of FF in the former , whereas the slope of FF exceeds the slope of XX in the latter ... X'X ' , is at Q ' , where the level of output is higher and the price of foreign exchange has increased . The increase ...
... slope of XX exceeds the slope of FF in the former , whereas the slope of FF exceeds the slope of XX in the latter ... X'X ' , is at Q ' , where the level of output is higher and the price of foreign exchange has increased . The increase ...
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