On the Monetary Approach to the Balance of Payments

Autor:	Arman Mansoorian
Rok vydání:	2013
Předmět:	Consumption (economics) Macroeconomics Inflation Economics and Econometrics media_common.quotation_subject Small open economy Monetary economics Current account Overlapping generations model Balance of payments Cash Economics Constraint (mathematics) media_common
Zdroj:	Open Economies Review. 25:721-737
ISSN:	1573-708X 0923-7992
DOI:	10.1007/s11079-013-9293-5
Popis:	The effects of inflation are considered for a small open economy with overlapping generations and a cash-in-advance constraint on consumption. In an endowment economy with one good, the model recovers the adjustment mechanism underlying the monetary approach to the balance of payments, which incorporated the real balance effect in the savings function. Nevertheless, if the model has two goods that require different degrees of cash, the factor intensities of the goods also play a crucial role in determining the response of savings. In that case, the predictions of the monetary approach may be overturned; a result that is supported numerically.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::b8da4f8fa7efcdaf9791f20cf4f3aad0 https://doi.org/10.1007/s11079-013-9293-5 Zobrazit plný text záznamu Full text from SpringerLink