Macroeconomics of Stagflation under Flexible Exchange Rates
In recent years, concerns of macroeconomic policy in industrial countries have shifted the focus of open-economy macroeconomics to new and interesting problems, and the resulting research has led to major revisions in views about the nature of problems with which policy must deal. This study provide...
Gespeichert in:
Veröffentlicht in: | The American economic review 1982-05, Vol.72 (2), p.390-395 |
---|---|
1. Verfasser: | |
Format: | Artikel |
Sprache: | eng |
Schlagworte: | |
Online-Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
Zusammenfassung: | In recent years, concerns of macroeconomic policy in industrial countries have shifted the focus of open-economy macroeconomics to new and interesting problems, and the resulting research has led to major revisions in views about the nature of problems with which policy must deal. This study provides a selective survey of some of the results of recent research and their policy implications in the areas of: 1. macroeconomic interdependence and monetary policy under flexible exchange rates, 2. adjustment to relative price changes, 3. profitability and growth, and 4. fiscal policy. It can be concluded that the emphasis of recent research on the supply side does not imply that aggregate demand policy does not matter; however, the growth of nominal demand from 1970-1980 was huge in comparison with the growth of demand in the 2 previous decades in all industrial countries. Therefore, it is reasonable to assume that supply-side factors have contributed to the decline in output growth and to the rise in worldwide unemployment. Research suggests that restoration of growth and full employment requires policies that support adjustments in the labor market and a reallocation of resources to support saving and private capital formation. |
---|---|
ISSN: | 0002-8282 1944-7981 |