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Macrodynamics and Pollution in Open Economy: An IS-LM Analysis

Author

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  • Ouyahia Emmanuel

    (Nice Sophia Antipolis University)

Abstract

The economy of the environment is traditionally the field of micro-economy. Yet Providing an analysis purely macro-economic is from a theoretical and praxeological point of view possible. With this in mind, we change the model IS-LM so that it incorporates the pollution. This extension of the model has allowed us to show the ecological and economic effects of different monetary or budgetary policies depending on the type of small open economy considered (with or without different kind of control pollution. activities).

Suggested Citation

  • Ouyahia Emmanuel, 2008. "Macrodynamics and Pollution in Open Economy: An IS-LM Analysis," Economic Analysis, Institute of Economic Sciences, vol. 41(1-2), pages 11-23.
    • Handle: RePEc:ibg:eajour:v:41:y:2008:i:1-2:p:11-23
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    File URL: http://www.ien.bg.ac.rs/index.php/en/2008/2008-12
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    More about this item

    Keywords

    Keynesian cross diagram; macroeconomic policy; pollution;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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