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Open Economy Dynamics

  • Michael Carlberg

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages I-1
  2. Introduction

    1. Michael Carlberg
      Pages 3-9
  3. Flexible Exchange Rates

    1. Michael Carlberg
      Pages 11-86
    2. Michael Carlberg
      Pages 87-124
  4. Fixed Exchange Rates

    1. Front Matter
      Pages 125-125
    2. Michael Carlberg
      Pages 127-151
    3. Michael Carlberg
      Pages 153-169
  5. Synopsis

    1. Michael Carlberg
      Pages 171-173
  6. Conclusion

    1. Michael Carlberg
      Pages 175-181
  7. Result

    1. Michael Carlberg
      Pages 183-184
  8. Back Matter
    Pages 185-203

About this book

Introduction

The focus is on the inter action between demand and supply in a small open economy featuring the dynamics of private capital, public debt and foreign assets. The overlapping generations model serves as a microfoundation. It proves useful to consider different scenarios. Exchange rates are either flexible or fixed. Money wages can be flexible, fixed or slow. Monetary and fiscal policy may be exogenous or endo­ genous. Either budget deficits are allowed, or continuous budget balance is postula­ ted. Wh at are the implications of various shocks? How does the chain of cause and effect look like? I had many helpful talks with my colleagues at Hamburg: Michael Schmid (now at Bamberg), Wolf Schäfer and Johannes Hackmann. In addition, Daphni-Marina Papadopoulou and Christine Schäfer-Lochte carefully discussed with me all parts of the manuscript. Last but not least, Doris Ehrich typed the manuscript as excellently as ever. I would like to thank all of them. CONTENTS INTRODUCTION 3 PART 1. FLEXIBLE EXCHANGE RATES 11 CHAPTER 1. BASIC MODEL 11 1. Flexible Money Wages 13 13 1. 1. Overlapping Generations 1. 2. Short-Run Equilibrium and Long-Run Equilibrium 23 1. 3. Stability 27 1. 4. Shoeks 30 2. Fixed Money Wages 34 34 2. 1. Overlapping Generations 2. 2. Short-Run Equilibrium and Long-Run Equilibrium 39 2. 3. Stability 41 2. 4. Shoeks 44 3. Slow Money Wages 52 3. 1. Special Case 1= 0 52 3. 2. General Case 60 4. Monetary Poliey 64 4. 1.

Keywords

Economy Dynamics Fiscal Policy Fiskalpolitik Geldpolitik Macroeconomics Makroökonomie Public Sector Unemployment dynamics economy employment exchange rates monetary policy service

Authors and affiliations

  • Michael Carlberg
    • 1
  1. 1.Department of EconomicsFederal UniversityHamburgGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-49995-1
  • Copyright Information Physica-Verlag Heidelberg 1993
  • Publisher Name Physica, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-7908-0708-0
  • Online ISBN 978-3-642-49995-1
  • Series Print ISSN 1431-1933
  • Buy this book on publisher's site
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Finance, Business & Banking