IDEAS home Printed from https://ideas.repec.org/p/qed/wpaper/364.html
   My bibliography  Save this paper

Sectoral Conflict over Stabilization Policies in Small Open Economies

Author

Listed:
  • Martin Prachowny

Abstract

A small open economy is characterized by a two-sector model with tradables and non-tradables. Stabilization policies typically have unequal effects on these two sectors and expansion of total output often requires contraction in one sector. Such situations make difficult obtaining effective consensus on the appropriate stabilization policy. Expansionary fiscal policy requires a contraction in one sector after the labour market adjusts to the disturbance; monetary policy is ineffective under fixed exchange rates and may not have sectoral conflict under flexible exchange rates. Sectoral conflict can be eliminated by designing policy combinations that maintain a given relative price of nontradables.

Suggested Citation

  • Martin Prachowny, 1979. "Sectoral Conflict over Stabilization Policies in Small Open Economies," Working Paper 364, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:364
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    Other versions of this item:

    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:qed:wpaper:364. 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: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    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.