Given the widespread interest in the balance of payments problems of non-oil developing countries during the 1970s, the lack of systematic empirical work on the reasons for these problems is somewhat surprising. This paper pursues this issue through an examination of the quantitative...

The purpose of this paper is to formulate a model for developing countries that allows output, prices, international reserves, money, and government taxing and expenditure policies to be determined simultaneously. The model developed, which stresses the key role of monetary disequilibrium, is...