We develop a dynamic model of capacity utilization and growth taking into account the codetermination of international competitiveness (measured by the real exchange rate) and income distribution. It follows that distribution, capacity utilization, and growth vary with the real exchange rate...

This paper examines the compatibility of inflation targeting with an economy that is Post Keynesian in character. We show that in a Post Keynesian environment, policymakers can both set and achieve an inflation target without adverse consequences for the real economy, as long as an appropriate...

A Post Keynesian macromodel of capacity utilization and economic growth is developed in which the supply of credit-money by the banking system is endogenous, and firms' financial fragility is explicitly modeled. Both the influence of interest rate and indebtedness on capacity utilization and the...

This paper contributes to the literature on balance-of-paymentsconstrained growth by investigating how structural change, identified with changes in the sectoral composition of exports and imports, affects the external constraint. We test both the original and a multisectoral version of...

The paper offers a time-series test of Thirlwall's Law for Brazil during the 1890-1973 period. The results confirm the existence of a long-run relationship between Brazilian gross domestic product (GDP), terms-of-trade, and world income, as Thirlwall's Law predicts. In addition, an error...

This paper argues that in developing countries, higher real wages---up to a certain critical point---may enhance the ability of workers to learn from and improve on foreign technology, with positive effects on international competitiveness and on the rate of economic growth consistent with...

This paper aims to make a contribution to modeling monetary rules in open developing economies, in a context in which international capital flows are a force that has a decisive influence on the sustainable combination of the real exchange rate (RER) and the inflation rate. The intended...

The paper aims to contribute to the debate on specialization and growth in two forms. First, it develops a north-south model in which the ratio between the income elasticity of exports and imports in the south (which gives the rate of growth compatible with external equilibrium) depends on the...