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Price Behavior in the Light of Balance of Payments Theories

Kravis, Irving B.; Lipsey, Robert E. - 2021

the theory of balance of payments adjustment. The theoretical writings on the balance of payments may be viewed at this …, the emphasis is on the price structure and price behavior that ought to be captured in a satisfactory theory of the … mechanisms of international adjustment. For pragmatic reasons, attention is placed mainly on the theory relating to exchange rate …

Persistent link: https://www.econbiz.de/10013221120

Sterling and the External Balance

Dornbusch, Rudiger; Fischer, Stanley - 2021

This paper analyzes the behavior of the current account and the exchange rate in the British economy during the 1970's, and discusses the outlook, as influenced by the availability of oil revenues, for exchange rate developments during the 1980's.Both trade and exchange rate behavior are...

Persistent link: https://www.econbiz.de/10013226583

Balance of Payments and the Foreign Exchange Market : A Dynamic Partial Equilibrium Model

Kouri, Pentti J. K. - 2021

This paper develops a dynamic partial equilibrium model of the foreign exchange market extending the standard textbook model in two respects. First, capital account transactions are explicitly incorporated into the model, and secondly, 'rational' speculative behaviour is also introduced. At a...

Persistent link: https://www.econbiz.de/10013234961

The Business Cycles of Balance-of-Payment Crises : a Revision of Mundellan Framework

Mendoza, Enrique G.; Uribe, Martín - 2021

In his seminal 1960 article Robert Mundell proposed a model of balance-of-payments crises in which confidence in the continuation of a currency peg depended on the observed holdings of central bank foreign reserves. We examine the implications of a reformulation of this view from the perspective...

Persistent link: https://www.econbiz.de/10013235602

The Current Account in the Eacroeconomic Adjustment Process

Sachs, Jeffrey D. - 2021

This paper provides a formal analysis of the current account balance in a dynamic model with optimizing agents. Two analytical ideas are stressed. First, an economy's current account balance depends as much on fixture economic trends as on the current economic environment. A shift in fiscal...

Persistent link: https://www.econbiz.de/10013243458

The Intertemporal Approach to the Current Account

Obstfeld, Maurice - 2011

the theory and empirical work on the intertemporal approach as it has developed since the early 1980s. After reviewing the …

Persistent link: https://www.econbiz.de/10013125071

On the Adequacy or Inadequacy of Keynesian Balance-of-Payments Theory : A Rejoinder

Buiter, Willem H.; Eaton, Jonathan - 2021

expansion appears to be the source of Kuska's erroneous indictment of "Keynesian" balance-of-payments theory.We also establish …

Persistent link: https://www.econbiz.de/10013230996

Tariffs, Terms of Trade, and the Real Exchange Rate in an Intertemporal Optimizing Model of the Current Account

Edwards, Sebastian - 2021

In this paper a minimal general equilibrium intertemporal model, with optimizing consumers and producers, is developed to analyze the process of real exchange rate determination. The model is completely real, and considers a small open economy that produces and consumes three goods each period....

Persistent link: https://www.econbiz.de/10013223889

International Finance

Obstfeld, Maurice - 2015

This essay written for The New Palgrave dictionary of Ecnomics provides a selective and interpretive account of the development of thought on international financial questions. Attention is focused on the process of international adjustment and on the proper definition of external balance. Since...

Persistent link: https://www.econbiz.de/10012750759

Portfolio Diversification, Real Interest Rates, and the Balance of Payments

Osler, Carol - 2010

The paper shows that differences in real interest rates across countries can arise even with perfect competition and fully integrated international capital markets. Specifically, we find that factor returns will differ across countries which are identical except for differences in technological...

Persistent link: https://www.econbiz.de/10012760240