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The monetary approach to the balance of payments (under fixed exchange rates)

In: The International Monetary System and the Theory of Monetary Systems

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Abstract

The Keynesian approach to the balance of payments and the monetary approach to the balance of payments provide very different statements about the determination of the structure of the balance of payments. The monetary approach – initiated by Robert Mundell – is perfectly coherent with the well-established elements of monetary theory. As such, it has to be considered as the theory which allows understanding of the determination of the balance of payments (and, more generally, the determination of prices, monetary flows, and so on).

Suggested Citation

  • ., 2016. "The monetary approach to the balance of payments (under fixed exchange rates)," Chapters, in: The International Monetary System and the Theory of Monetary Systems, chapter 15, pages 128-136, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17285_15
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    Keywords

    Economics and Finance;

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