“A Model of Adjustment and Growth

Reinhart, Carmen (1990): “A Model of Adjustment and Growth. Published in: IMF Staff Papers, , Vol. 37, No. 1 (March 1990): pp. 168-182.

Abstract

A model that merges 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 and estimated. The tradeoff between the simplifying assumtions of the model and its ability to fit reality is assessed in terms of a diverse sample of developing countries for which the key parameters of the model are estimated.

• Item Type: MPRA Paper
• Language: English
• Keywords: Monetary approach to the balance of payments; economic growth; developing countries
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

References

International Monetary Fund, International Financial Statistics Yearbook (Washington: International Monetary Fund, various years). ---, The Monetary Approach to the Balance of Payments (Washington: International Monetary Fund, 1977). ---, World Economic Outlook (Washington: International Monetary Fund, various years). ---, Theoretical Aspects of the Design of Fund-Supported Adjustment Programs, Occasional Paper No. 55 (Washington: International Monetary Fund, 1987). Khan, Mohsin S., and Peter J. Montiel, "Growth-Oriented Adjustment Programs: A Conceptual Framework," Staff Papers, International Monetary Fund (Washington), Vol. 36 (June 1989). ---, and Nadeem Haque, "Adjustment with Growth: Relating the Analytical Approaches of the World Bank and the IMF," Development Policy Issues Series Discussion Paper (Washington: World Bank, October 1986). Reinhart, Carmen M., "A Model of Adjustment and Growth: An Empirical Analysis," IMF Working Paper WP/89/32 (Washington: International Monetary Fund, 1989). World Bank, "The Revised Minimum Standard Model," a study by the Comparative Analysis and Projections Division unpublished; Washington, May 1980).