Abstract
This chapter develops an alternative international macroeconomic model for evaluating the effectiveness of fiscal and monetary policy in stabilizing national income under fixed and floating exchange rates. It encompasses national output and income, saving, investment, the current account, interest rates and the money supply, while incorporating long-recognized linkages between the exchange rate, price levels and real interest rates, consistent with conventional international parity conditions.
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© 2009 Anthony J. Makin
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Makin, A.J. (2009). Macroeconomic Policy, Interest Rates and National Income. In: Global Imbalances, Exchange Rates and Stabilization Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230250758_8
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DOI: https://doi.org/10.1057/9780230250758_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-36669-9
Online ISBN: 978-0-230-25075-8
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