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Results tagged with open-economy-macro
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user 86
11
votes
2
answers
730
views
Effect of a permanent increase in government expenditure in an open economy?
In Krugman & Obstfeld's International Economics, 8e, Chapter 16, an involved argument is given showing that a permanent fiscal expansion will not affect output even in the short run. It seems to me th …
- 1,135
6
votes
1
answer
111
views
Uncovered interest parity and asymmetric capital controls
To derive the uncovered interest parity (UIP) condition we assume, among other things, that there is free movement of capital across countries.
But this cannot be directly applied to India because of …
- 1,135