このエントリーをはてなブックマークに追加
ID 40500
FullText URL
Author
Abstract
In many standard undergraduate textbooks of macroeconomics, open economies are discussed by means of the Mundell−Fleming model, an open macroeconomic version of the IS−LM model. This short paper develops a simple differential−equation version of the dynamic Mundell−Fleming model, taking account of two key assumptions : (i) the Marshall−Lerner condition is globally violated and (ii) the investment function depends nonlinearly on the current output level. Under our settings, we demonstrate that the exchange rate and the other relevant variables can display persistent fluctuations due to the occurrence of a stable limit cycle. We also discuss a paradox that the resulting dynamics may well be consistent with the J−curve effect.
Note
研究ノート (Note)
Published Date
2005-09-10
Publication Title
岡山大学経済学会雑誌
Publication Title Alternative
Okayama Economic Review
Volume
volume37
Issue
issue2
Publisher
岡山大学経済学会
Publisher Alternative
The Economic Association of Okayama University
Start Page
57
End Page
63
ISSN
0386-3069
NCID
AN00032897
Content Type
Journal Article
Related Url
http://www.e.okayama-u.ac.jp/gakkai/
language
英語
File Version
publisher
Refereed
True
Eprints Journal Name
oer