This book presents a two-sector macroeconomic model of a small open economy in which the relative price of nontradables and the real wage in units of tradables play a crucial role in the determination of important macroeconomic variables. Superimposed on this framework is the monetary sector where nominal variables are determined. The impact of sectoral conflict on policy decisions is a recurring theme.
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number
445.
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