IDEAS home Printed from https://ideas.repec.org/a/eee/jmacro/v13y1991i4p597-618.html
   My bibliography  Save this article

Aggregate dynamics in an open economy: The case of sluggish output adjustment

Author

Listed:
  • Khang, Chulsoon

Abstract

Recent experience in Western economies, particularly in the U.S., points to the fact that, though there is a great deal of fluctuation in exchange rates, the trade balance response to changes in exchange rates is rather small, at least in the short-run. An attempt has been made in this paper to construct a model which is consistent with this phenomenon. We introduce a sluggish output supply adjustment in addition to the "usual" sluggish output price adjustment in the commodity market and show that the model displays not only the feature of exchange rate volatility but also the feature of sluggish trade balance adjustment.

Suggested Citation

  • Khang, Chulsoon, 1991. "Aggregate dynamics in an open economy: The case of sluggish output adjustment," Journal of Macroeconomics, Elsevier, vol. 13(4), pages 597-618.
    • Handle: RePEc:eee:jmacro:v:13:y:1991:i:4:p:597-618
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0164-0704(05)80015-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jmacro:v:13:y:1991:i:4:p:597-618. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622617 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.