Theory and Policy of Adjustment in an Open Economy

J. Peter Neary

No 61, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper presents a non-technical introduction to the analysis of how an open economy adjusts to exogenous shocks. Three alternative models of adjustment are considered, each one appropriate to a different time horizon: the specific-factors model with transitional unemployment for the short run; the Heckscher-Ohlin model with temporary capital specificity for the medium run; and a new model of growth and structural change for the long run. Consideration is also given to the choice of policies towards the adjustment process, from both a welfare economic and a political economy perspective.

Keywords: Adjustment; International Trade Theory; Long Run; Short Run; Structural Change (search for similar items in EconPapers)
Date: 1985-04
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=61 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:61

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... apers/dp.php?dpno=61

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().