Elasticities Approach to the Balance of Payments
The substance of a theory is independent of the manner in which it is dressed. In particular, it is a matter of style only whether or not formulae are expressed in terms of elasticities of demand and supply, or in terms of ordinary derivatives. To speak of an ‘elasticities approach’ to the balance of payments is therefore to speak no sense at all.
KeywordsElasticities approach to the balance of payments Excess demand
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