The 1964 Kennedy–Johnson tax cut is often cited as the single most successful application of Keynesian stabilization policy. The author challenges this orthodox historical view by exposing the haphazard planning, simplistic economic theorizing, irreconcilable numerical projections, and...

The purpose of this paper is to develop a devaluation model for a small open economy that incorporates the crucial features of non-traded goods, money, and the requirements of portfolio equilibrium. Also, it will be shown in the paper that the exchange rate influences the price level and...

The active control and operation of firms in other countries implied by direct foreign investment has dominated the international investment position of the U.S. vis-a-vis the rest of the world. At the end of 1967, 73% of U.S.long term foreign assets were held in the form of direct investment....

The balance of this paper will take the following form: a hypothesis concerning the portfolio manangement of international reserves will be stated; then, this hypothesis will be tested statistically; finally, a discussion of these results and their meaning for the future will conclude the paper.

While the concept of "imported inflation" and its relevance for open economies have received considerable attention in the policy-oriented literature, the theoretical underpinnings of this phenomenon have not been constructed as carefully as might be desirable in view of the controversial nature...

A small open economy is forced to operate in a constrained policy environment. Although for some products even a small country may have some monopoly power, in the aggregate these countries approximate more closely the behaviour of price takers than price makers. It is to economies such as...

The purpose of this paper is to develop a devaluation model for a small open economy that incorporates the crucial features of non-traded goods, money, and the requirements of portfolio equilibrium. Also, it will be shown in the paper that the exchange rate influences the price level and...

While the concept of "imported inflation" and its relevance for open economies have received considerable attention in the policy-oriented literature, the theoretical underpinnings of this phenomenon have not been constructed as carefully as might be desirable in view of the controversial nature...

The balance of this paper will take the following form: a hypothesis concerning the portfolio manangement of international reserves will be stated; then, this hypothesis will be tested statistically; finally, a discussion of these results and their meaning for the future will conclude the paper.

A small open economy is forced to operate in a constrained policy environment. Although for some products even a small country may have some monopoly power, in the aggregate these countries approximate more closely the behaviour of price takers than price makers. It is to economies such as...