By Rudiger Dornbusch
Rudiger Dornbusch's articles on alternate charges and open financial system macroeconomics are one of the most often stated within the box of foreign economics. amassed for the 1st time in Exchange charges and Inflation, these articles, written over the last fifteen years, hide a variety of matters whereas delivering specified insights into the study kind of a massive economist. in this interval the economics career has shifted from worldwide monetarism to the hot classical economics, and Dornbusch's personal pursuits, and a few of his ideals, have replaced besides. Twenty articles are accumulated in 4 elements: alternate price idea; distinct issues in alternate cost Economics; Equilibrium genuine trade charges, and Inflation and Stabilization. every one half comprises an advent that discusses the essays and locations them in context. Rudiger Dornbusch is Ford overseas Professor of Economics at MIT
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Kemp (1962, 1969) provides an identical list. 9. The discussion in this chapter is developed in terms of fiscal policy, although what is essentially required is a policy that will control absorption so that alternatively the argument could be developed in terms of monetary policy. In the present context we assume (implicitly) that a Meade-type "neutral monetary policy" is pursued so as to maintain constant the rate of interest and thereby allow us to disregard the interrelationship between goods and asset markets.
1950. " Rev. Econ. Stud. 18, no. 1, 28-41. Kreinin, M. 1971. International Economics, New York: Harcourt Brace Jovanovich. Machlup, F. 1955. " Amer. Econ. Rev. 45 (June): 255-279. Magee, S. 1973. "Currency Contracts, Pass-Through and Devaluation," Brookings Papers, Washington, 3, 303-323. Magee, S. 1975. " In P. B. , International Trade and Finance: Frontiers for Research. Cambridge Univ. Press. McDougall, I. A. 1970. " In I. A. McDougall and R. N. , Studies in International Economics. Amsterdam: North-Holland.
In H. Ellis and L. A. , Readings in the Theory of International Trade. : Glencoe, 83-103. Salter, W. 1959. " Econ. Rec. 35 (August): 226-238. Stern, R. M. 1973. The Balance of Payments. Chicago: Aldine. Â < previous page < previous page 38 page_41 page_42 next page > next page > 39 Page 42 3 Real and Monetary Aspects of the Effects of Exchange Rate Changes This chapter investigates the role and effects of exchange rate changes in a simple general equilibrium model of a small open economy. " A monetary view of devaluation would emphasize the role of the real value of cash balances, while the alternative approach would place primary emphasis on relative prices and real wagesa divergence of views not entirely unlike the earlier debate over "elasticity'' and "absorption" approaches.