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A Diagrammatic Exposition of the Monetary Trade Model

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  • NISSAN LIVIATAN

Abstract

In recent literature the monetary model of trade is presented diagrammatically in terms of hoarding and of the relative price of non‐traded goods. In this paper we go back to the original diagrammatic approach of Mundell where he uses the stock of domestic money instead of hoarding. We adapt Mundells approach to the more recent developments of the monetary model and point out its expository advantages. We conclude the paper with a comparison of the two approaches.

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  • Nissan Liviatan, 1979. "A Diagrammatic Exposition of the Monetary Trade Model," The Economic Record, The Economic Society of Australia, vol. 55(3), pages 222-229, September.
    • Handle: RePEc:bla:ecorec:v:55:y:1979:i:3:p:222-229
    DOI: 10.1111/j.1475-4932.1979.tb02224.x
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    References listed on IDEAS

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    1. Murray C. Kemp, 1970. "The Balance of Payments and the Terms of Trade in Relation to Financial Controls," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 37(1), pages 25-31.
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