Teaching Post Keynesian Exchange Rate Theory

John Harvey

No 200601, Working Papers from Texas Christian University, Department of Economics

Abstract: The goal of this paper is to provide a model and method for those wishing to include the Post Keynesian perspective when teaching exchange rate theory. It begins by reviewing neoclassical approaches (purchasing power parity, the monetary model, and the Dornbusch model) and then develops a graphical Post Keynesian model that is based on Keynes's Z-D diagram, endogenous money, a currency market driven by portfolio capital flows, and no assumption of a tendency toward full employment or balanced trade. The model is then used to look at historical examples and policy.

Keywords: exchange rate; Post Keynesian; teaching (search for similar items in EconPapers)
JEL-codes: A20 F31 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2006-11
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Published in Journal of Post Keynesian Economics, Winter 2007, pages 147-68

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http://www.econ.tcu.edu/RePEc/tcu/wpaper/wp06-01.pdf First version, 2006 (application/pdf)

Related works:
Journal Article: Teaching Post Keynesian exchange rate theory (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:tcu:wpaper:200601

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