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Time Dynamics Of Stabilization Theories And Responses To Debt And Financial Crises: An Analysis Of Mexico, Argentina, Nigeria And Ghana, 1960-2011

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  • WARBURTON Christopher E.S.

Abstract

This paper uses continuous time series data from 1960 to 2011 to evaluate the contributions of foreign income to domestic macroeconomic stability. Foreign income is operationalized as income from major trading partners. Elasticity and absorption models are used to examine the effects of foreign income on domestic trade imbalances and per capita national income under narrow and broad theoretical propositions of partial and general equilibrium analyses. The reliance on foreign income is shown to be tenuous, but saving has a greater impact on per capita national income. Expansionary monetary policy may be beneficial to growth beyond immediate stabilization challenges.

Suggested Citation

  • WARBURTON Christopher E.S., 2014. "Time Dynamics Of Stabilization Theories And Responses To Debt And Financial Crises: An Analysis Of Mexico, Argentina, Nigeria And Ghana, 1960-2011," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(2).
    • Handle: RePEc:eaa:aeinde:v:14:y:2014:i:2_1
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    More about this item

    Keywords

    Debt Crises; Devaluation; IMF; Foreign Income; Stabilization Theories;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises

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