 The Open EconomyR. J. Ball
Chapter 4 in Money and Employment, 1982, pp 74-100 from Palgrave Macmillan Abstract: Abstract The analysis of the behaviour of the open economy, with trade in goods and services and inflows and outflows of capital, brings us closer to the typical problems of the real economy. While the ideas discussed in the last chapter might be applied to the world as a whole, important new considerations now appear which affect the economic behaviour of one country among many. We have seen how views about the determination of the supply of goods and services affects the analysis of inflation and employment in the closed economy. In the open economy, trade offers additional sources of supply which require that the stories about employment and inflation be amended. Trade, capital flows and changes in exchange rates create new transmission mechanisms, through which economic change in one country can be transmitted to another. Consideration of these relationships not only raises the need for a re-examination of the effects of stabilisation policies on employment and inflation, but also wider questions about the capacity of an individual economy to pursue such policies independently of the behaviour of the rest of the world. Keywords: Exchange Rate; Monetary Policy; Current Account; Money Supply; Full Employment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-16695-4_4 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-16695-4_4 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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