Lecture Five: Some Typically Keynesian Exercises in Open-economy Modelling

M. L. Burstein
Additional contact information
M. L. Burstein: York University

Chapter 5 in Open-Economy Monetary Economics, 1989, pp 103-124 from Palgrave Macmillan

Abstract: Abstract In classical or neoclassical models of the open economy, flows of goods and funds across frontiers are modulated by terms-of-trade effects and by differences in nominal and real interest rates. There is surely no formal classical treatment of effects of changes in Economy E’s aggregate income and output on its balance of payments. The burden of adjustment is borne by prices, not quantities. Purely Keynesian models invert the analysis: the adjustment-burden is borne by changes in aggregate income and output: price-adjustment may even be ignored.

Keywords: Interest Rate; Fiscal Policy; Real Interest Rate; Public Spending; Trade Balance (search for similar items in EconPapers)
Date: 1989
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:palchp:978-1-349-10963-0_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349109630

DOI: 10.1007/978-1-349-10963-0_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().