A Structuralist Model of the Small Open Economy in the Short, Medium and Long Run

Hian Hoon and Edmund Phelps

Macroeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: Open-economy macroeconomics contains a monetary model in the Keynesian tradition that is deemed serviceable for analyzing the short run and a nonmonetary neoclassical model thought capable of handling the long run. But do the Keynesian and neoclassical models meet the challenges thrown out by the main events of the past few decades? We first indicate that the effects of these shocks on the open economy are not well captured by either the standard Keynesian model or the standard neoclassical theory. Next we provide a careful development of a nonmonetary model of the equilibrium path of the real exchange rate, share price level, as well as natural output, employment and interest that contains trading frictions of the customer-market type. We then examine its implications for these shocks not only over the medium run but over the short run and the long run as well.

Keywords: structuralist model; share price; Real exchange rate; Employment (search for similar items in EconPapers)
JEL-codes: E24 (search for similar items in EconPapers)
Date: 2007-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.eaber.org/node/22439 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439 [301 Moved Permanently]--> https://www.eaber.org/node/22439)

Related works:
Journal Article: A structuralist model of the small open economy in the short, medium and long run (2007)
Working Paper: A Structuralist Model of the Small Open Economy in the Short, Medium and Long Run (2005)
Working Paper: A Structuralist Model of the Small Open Economy in the Short, Medium and Long Run (2005)
Working Paper: A Structuralist Model of the Small Open Economy in the Short, Medium and Long Run (2004)
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:eab:macroe:22439

Access Statistics for this paper

More papers in Macroeconomics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().