Adjustment to devaluation with money and nontraded goods

Michael Connolly, Dean Taylor

Research output: Contribution to journalArticle

29 Citations (Scopus)

Abstract

This paper analyzes the dynamics of adjustment to devaluation in a framework which highlights the role played by nontraded goods and money. We provide a specific analytical model of devaluation incorporating substitution effects in production and consumption as well as liquidity effects resulting from a stock-flow adjustment process. The analysis provides specific solutions for the time path of the balance of payments and the price of nontraded goods following devaluation.

Original languageEnglish (US)
Pages (from-to)289-298
Number of pages10
JournalJournal of International Economics
Volume6
Issue number3
DOIs
StatePublished - Jan 1 1976
Externally publishedYes

Fingerprint

Devaluation
Analytical model
Balance of payments
Liquidity effect
Substitution effect
Adjustment process

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Cite this

Adjustment to devaluation with money and nontraded goods. / Connolly, Michael; Taylor, Dean.

In: Journal of International Economics, Vol. 6, No. 3, 01.01.1976, p. 289-298.

Research output: Contribution to journalArticle

@article{8274473dbcb6449e85f160541f6ec643,
title = "Adjustment to devaluation with money and nontraded goods",
abstract = "This paper analyzes the dynamics of adjustment to devaluation in a framework which highlights the role played by nontraded goods and money. We provide a specific analytical model of devaluation incorporating substitution effects in production and consumption as well as liquidity effects resulting from a stock-flow adjustment process. The analysis provides specific solutions for the time path of the balance of payments and the price of nontraded goods following devaluation.",
author = "Michael Connolly and Dean Taylor",
year = "1976",
month = "1",
day = "1",
doi = "10.1016/0022-1996(76)90004-0",
language = "English (US)",
volume = "6",
pages = "289--298",
journal = "Journal of International Economics",
issn = "0022-1996",
publisher = "Elsevier",
number = "3",

}

TY - JOUR

T1 - Adjustment to devaluation with money and nontraded goods

AU - Connolly, Michael

AU - Taylor, Dean

PY - 1976/1/1

Y1 - 1976/1/1

N2 - This paper analyzes the dynamics of adjustment to devaluation in a framework which highlights the role played by nontraded goods and money. We provide a specific analytical model of devaluation incorporating substitution effects in production and consumption as well as liquidity effects resulting from a stock-flow adjustment process. The analysis provides specific solutions for the time path of the balance of payments and the price of nontraded goods following devaluation.

AB - This paper analyzes the dynamics of adjustment to devaluation in a framework which highlights the role played by nontraded goods and money. We provide a specific analytical model of devaluation incorporating substitution effects in production and consumption as well as liquidity effects resulting from a stock-flow adjustment process. The analysis provides specific solutions for the time path of the balance of payments and the price of nontraded goods following devaluation.

UR - http://www.scopus.com/inward/record.url?scp=0010048240&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0010048240&partnerID=8YFLogxK

U2 - 10.1016/0022-1996(76)90004-0

DO - 10.1016/0022-1996(76)90004-0

M3 - Article

AN - SCOPUS:0010048240

VL - 6

SP - 289

EP - 298

JO - Journal of International Economics

JF - Journal of International Economics

SN - 0022-1996

IS - 3

ER -