Market Segmentation and Effective Demand Shortage in a World with Dynamic Optimization
We consider a competitive two-country monetary model with infinitely-lived optimizing agents and sluggish price adjustment, in which households can buy only the commodities sold in their own country and firms allocate products between the two countries so that the expected marginal revenue equals internationally. In this model worldwide stagnation occurs on the equilibrium path. The richer country faces more serious stagnation, higher commodity consumption is smaller. Its currency keeps appreciating over the other currency. own and spill-over effects of stimulative policies are also examined.
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.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:94-14. 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: (Thomas Hoffmann)
If references are entirely missing, you can add them using this form.