Journal article
Nontraded goods and the balance of trade in a neo-Keynesian temporary equilibrium
- Abstract:
- This paper explores the implications for international monetary economics of recent work on macroeconomic models of temporary equilibrium with rationing. A model of a small open economy is presented, which, though fully consistent in the long run with the monetary approach to the balance of payments, behaves very differently in the short run when the wage and the price of nontradeables are sticky. Among the comparative statics properties of the model are the following: a devaluation may not improve the trade balance; a wage cut may not increase employment; and technological progress has different effects, depending on the sector in which it occurs.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Authors
- Publisher:
- John Wiley & Sons
- Journal:
- Quarterly journal of economics More from this journal
- Volume:
- 95
- Issue:
- 3
- Pages:
- 403-429
- Publication date:
- 1980-11-01
- ISSN:
-
0033-5533
- Language:
-
English
- Keywords:
- Subjects:
- UUID:
-
uuid:ad00813a-e067-4aec-884f-5da23e11b728
- Local pid:
-
ora:2231
- Deposit date:
-
2008-08-12
Terms of use
- Copyright holder:
- President and Fellows of Harvard College
- Copyright date:
- 1980
- Notes:
- N.B. Professor Neary was based at Trinity College Dublin when this article was first published. The full-text of the article is not available in ORA at this time. Citation: Neary, J. P. (1980). 'Nontraded goods and the balance of trade in a neo-Keynesian temporary equilibrium', Quarterly Journal of Economics, 95(3), 403-429.
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