In this paper a simple open economy macro economic model is developed to identify which of the gaps-saving-investment, trade, or fiscal-become the binding constraints in the adjustment process with growth in developing countries. Using results of comparative statistics, the stability conditions...

The international transmission of economic disturbances is analysed in a three-country world where two countries have no macroeconomic impact on a third country but are large enough to influence each other under a system of mixed exchange rates - a system that combines the fixed exchange rates...

This paper analyzes the international transmission of economic distur-bances in a three-country world where two countries have no macroeconomic impact on a third country but are large enough to influence each other un-der fixed and flexible exchange rates. While the fixed exchange rate (FER)...