Precios y nivel de actividad económica en una economía abierta: la oferta y la demanda agregada con tipo de cambio fijo

In this paper we present the combined analysis of the supply and the aggregate demand under a régime of fixed exchange rate, for the short, medium and long term, in a context of perfect capital mobility. The model determines the prices level and the production, given a group of exogenous variables. In the short term, the aggregate supply is perfectly elastic, the demand determines the production, while the prices level is exogenous. In the medium term, the level of activity exercises an influence on the price level, what implies an aggregate supply of positive slope and the changes in the demand affects to prices and quantities. Finally, in the long term, the aggregate supply is perfectly inelastic and the changes in the demand only affect the prices level; not the production. In the final part of the paper, through the endogenization of the expected prices, will be studied the adjustment dynamics toward the stady state, before the different shocks of supply and demand.