Reinhart, Carmen (1989): A model of adjustment and growth: An empirical analysis. Published in: Macroeconomic Models for Adjustment in Developing Countries (1991): pp. 10-37.
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This paper develops a model merging the monetary approach to the balance of payments and a neoclassical growth model into a unified framework in which inflation, growth, and the balance of payments are simultaneously determined. The empirical part of the paper presents estimates of the key parameters of the model for a sample of seven diverse developing countries and tests the validity of a subset of the theoretical assumptions. The estimated model is then used for a variety of comparative static exercises, including the effects of f i s c a l and monetary policy changes, and devaluation.
|Item Type:||MPRA Paper|
|Original Title:||A model of adjustment and growth: An empirical analysis|
|Keywords:||growth current account inflation IMF programs devaluation|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E20 - General
|Depositing User:||Carmen Reinhart|
|Date Deposited:||17. Mar 2009 05:12|
|Last Modified:||19. Feb 2013 10:02|
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