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A Simple Aggregate Demand Analysis With Dynamic Optimization in a Small Open Economy

We develop an aggregate demand analysis of a small open economy based on all agents' dynamic optimization. Murota and Ono (2015) present a simple Keynesian cross analysis with dynamic optimization. This paper extends it to a small-country setting with two factors and two commodities, of which the structure is as simple as the conventional Keynesian cross analysis. We apply the model to examine the effects of changes in various parameters, such as the terms of trade, foreign asset holdings and government purchases, on aggregate demand. They are quite different from those under full employment and those of the Mundell-Fleming model
Year of publication:
2019
Authors: Hashimoto, Ken-Ichi
Other Persons: Ono, Yoshiyasu (contributor)
Publisher: [2019]: [S.l.] : SSRN
Subject: Theorie | Theory | Kleine offene Volkswirtschaft | Small open economy | Gesamtwirtschaftliche Nachfrage | Aggregate demand | Offene Volkswirtschaft | Open economy
Extent:
1 Online-Ressource (26 p)
Series:
ISER Discussion Paper ; No. 1061, July 2019
Type of publication: Book / Working Paper
Language: English
Notes:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 31, 2019 erstellt
Other identifiers:
10.2139/ssrn.3430086 [DOI]
Classification: E12 - Keynes; Keynesian; Post-Keynesian ; E13 - Neoclassical ; E21 - Consumption; Saving ; E24 - Employment; Unemployment; Wages ; F32 - Current Account Adjustment; Short-Term Capital Movements ; F41 - Open Economy Macroeconomics
Source:
ECONIS - Online Catalogue of the ZBW
Persistent link: https://ebvufind01.dmz1.zbw.eu/10012865570
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