Although a major contribution to trade theory, Krugman’s 1979 demonstration that ‘trade can arise and lead to mutual gains even when countries are similar’ fails to make explicit the economic mechanisms that lead up to this result. The current paper attempts to fill this gap by addressing...

Leão (2005) has recently proposed a new explanation for the short run variability of the velocity of money based on the changes in the composition of the expenditure that occur along the business cycle. This paper presents further empirical evidence in favour of Leão’s Expenditure...

In most countries, discretionary fiscal policy has often been pro-cyclical: instead of dampening the business cycle, actual discretionary policy has mostly magnified it. This paper proposes a mechanism that allows discretionary fiscal policy to be counter-cyclical. This involves the creation of...

As apresentações habituais do modelo Hecksher-Ohlin (HO) nos livros de texto têm quatro problemas: análise por vezes superficial dos mecanismos económicos relevantes; escassa ilustração através de exemplos económicos concretos da capacidade explicativa do modelo; utilização de...

No quadro do modelo ricardiano das vantagens comparativas, analisam-se as consequências de desequilíbrios nas balanças comerciais quando os países estão em câmbios flexíveis ou em câmbios fixos (com ou sem esterilização monetária). As principais conclusões são as seguintes: - Em...