Output and Unanticipated Money in the Dependent Economy Model

Peter Montiel

IMF Staff Papers, 1987, vol. 34, issue 2, 228-259

Abstract: This paper builds a "new classical" model for a fixed-exchange rate economy based on the dependent economy framework, which has proved particularly fruitful for the analysis of macroeconomic issues in developing countries. The implied reduced-form output equations are quite different from their closed, one-sector counterparts. In particular, anticipated policy changes have real effects in this model, though these effects differ from those of unanticipated changes. These equations are estimated for Mexico for the fixed exchange-rate period 1953-75. The results cast some doubts on the relevance of new classical analysis for Mexico during this period.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.jstor.org/stable/3867135?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

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:pal:imfstp:v:34:y:1987:i:2:p:228-259

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().