Macrodynamics of Stabilization under Dual Exchange Rate: an Effective Demand Model
The paper examines effects of selected measures of stabilization in a financially repressed economy under two-tier exchange rate. Since financial repression is a generic category, it requires context-specific (model-specific) representation. In this paper financial repression is represented in terms of a very rudimentary asset structure. The models of the dual exchange rate in the existing literature are by and large full-employment models. Consequently the targets of stabilization are inflation and current account balance. This paper attempts to make an intervention in the literature by introducing the problem of effective demand and unemployment. Hence, we get wider range of targets of stabilization namely unemployment, current account balance and inflation. We will utilize the asset approach of the Calvo-Rodriguez model in an otherwise aggregative Dornbusch type model under the assumption that commodity price is sticky and output is demand determined.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 23 (2008)
Issue (Month): ()
|Contact details of provider:|| Web page: http://econo.sejong.ac.kr/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:integr:0439. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee)
If references are entirely missing, you can add them using this form.