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Macroeconomic Analysis for Small Open Economies

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  • Martin Prachowny

Abstract

This book presents a two-sector macroeconomic model of a small open economy in which the relative price of nontradables and the real wage in units of tradables play a crucial role in the determination of important macroeconomic variables. Superimposed on this framework is the monetary sector where nominal variables are determined. The impact of sectoral conflict on policy decisions is a recurring theme.

Suggested Citation

  • Martin Prachowny, 1981. "Macroeconomic Analysis for Small Open Economies," Working Paper 445, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:445
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    Cited by:

    1. Fallon, Peter R. & Riveros, Luis A., 1989. "Adjustment and the labor market," Policy Research Working Paper Series 214, The World Bank.
    2. Frank Barry, 2001. "Openness, the Phillips Curve and the cost of relinquishing the currency," Working Papers 200105, School of Economics, University College Dublin.
    3. Makin, Anthony J., 1998. "A dependent economy model of public expenditure and the exchange rate," International Review of Economics & Finance, Elsevier, vol. 7(4), pages 453-463.
    4. de Groof, R.J. & van Tuijl, M.A., 1992. "Commercial integration and fiscal policy in interdependent, financially integrated two-sector economies with real and nominal wage rigidity," Research Memorandum FEW 567, Tilburg University, School of Economics and Management.

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