New insights from a structural economic dynamic approach to balance of payments constrained growth

Ricardo Araujo

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper it is shown that once-for-all variations in the level of the exchange rate may play an important role in the sectoral composition of the economy and this fact has important implications in terms of a disaggregated version of the Thirlwall’s law even if the argument of the quantitative unimportance of relative price movements holds. The growth rate of a country is then shown to be affected by once-for-all movements in the level of nominal exchange rates and the concept of a natural exchange rate is introduced.

Keywords: Structural Economic Dynamics; Thirlwall’s law; Exchange rates (search for similar items in EconPapers)
JEL-codes: F43 O41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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https://mpra.ub.uni-muenchen.de/30332/1/MPRA_paper_30332.pdf original version (application/pdf)

Related works:
Chapter: New Insights from a Structural Economic Dynamic Approach to Balance of Payments Constrained Growth (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:30332

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