Kiel Working Papers, Kiel Institute for World Economics
No 1345:
International Adjustment in the New Neoclassical Synthesis
Marvin Goodfriend
Abstract: This paper applies principles of the New Neoclassical
Synthesis (NNS) to questions of international trade and financial
adjustment. The analytical framework is a 2-country, 2-good, 2- period
model designed to explore the behavior of the balance of payments, the
terms of trade, and aggregate fluctuations in terms of interest rate and
exchange rate policies practiced by the world's most important central
banks.
30 pages, June 2007
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