In this paper we present a model similar to that of Aggregate Supply and Demand, for the study of the fluctuations of the two most important macroeconomic variables: inflation and the level of activity. In the first part we present the case of a closed economy, in which the basic equations will...

In this paper we present the combined analysis of the offer and the demand added under a regime of flexible exchange rate, for the short, the medium and the long term, in a context of perfect mobility of capitals. This model of supply and demand aggregate, determined the level of prices and the...

In this paper we present the Mundell - Fleming model for a regime of fixed and flexible exchange rate, in a context of perfect capital mobility. In the first part we present the model for the case of a fixed exchange - regime, in which the basic equations will be introduced describing the market...

In this paper we present the combined analysis of the supply and the aggregate demand under a régime of fixed exchange rate, for the short, medium and long term, in a context of perfect capital mobility. The model determines the prices level and the production, given a group of exogenous...

In this paper the Mundell - Fleming model is used to derive the curve of the aggregate demand for regimens of fixed and flexible exchange rates, in a context of perfect capital mobility. A curve of perfectly elastic aggregate supply will be supposed. Though, all increment of the aggregate demand...

The private commercial banking and a widespread foreign currency market are the central institutions that characterize the financial system of many Latin American countries. In these economies, the stock markets still don't have a great macroeconomic importance and the markets for government...

In this paper we study the operation of the labor market, and a curve of aggregate supply is derived, for the cases of closed and open economy, in the short, medium and long term. In an open economy, an important part of the production costs is derived of the use of imported inputs in the...

In this paper we extend the Dornbusch´s model (1976), the overshooting of the exchange rate, in two directions. First, as it was modeled by Wilson (1979), we assume that agents have rational expectations, i.e. perfect foresight in a deterministic model. In this framework, we analyze the effects...

In this paper we present a review of the literature of economic growth for open economies. Then, from this review, we build a model of economic growth which take into account the main features of the Peruvian economy such as small economy, openness in goods and financial markets, strong link...

This paper describes the evolution of macroeconomic theory in both closed and open economies. In the first section we present the evolution of the theory of a closed economy‚economies that do not have international trade; nor do it have links to the international financial markets. Since Keynes,...