EconPapers    
Economics at your fingertips  
 

Inconsistency and over-determination in balance-of-payments-constrained growth models: a note

José Luís Oreiro ()

Review of Keynesian Economics, 2016, vol. 4, issue 2, 193-200

Abstract: The objective of this short note is to re-evaluate the solution given by Palley (2002) for the inconsistency problem in BoP-constrained growth models. I show that once we distinguish the concepts of natural and warranted rates of growth that over-determination problem appears again, requiring the introduction of the level of real exchange rate in the formal structure of BoP models in order to be solved.

Keywords: demand-led growth models; real exchange rate; Thomas Palley (search for similar items in EconPapers)
JEL-codes: E1 E12 O1 O11 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.elgaronline.com/abstract/journals/roke/4-2/roke.2016.02.04.xml (application/pdf)
Restricted access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:4:y:2016:i:2:p193-200

Access Statistics for this article

Review of Keynesian Economics is currently edited by Thomas Palley, Matías Vernengo and Esteban Pérez Caldentey

More articles in Review of Keynesian Economics from Edward Elgar Publishing
Bibliographic data for series maintained by Phillip Thompson ().

 
Page updated 2022-09-21
Handle: RePEc:elg:rokejn:v:4:y:2016:i:2:p193-200