Devaluation, Equi-proportional Export Subsidies and Import Tariffs, and Transfer Payments
Bibliographic Data
| ID | 9725800 |
|---|---|
| Authors | Edward A Kuska (corresponding author) |
| Year | 1976 |
| Volume | 43 |
| Issue | 170 |
| Pages | 181 |
| Publication date | 1976-05-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2553208 |
| OpenAlex | W2011956415 |
| Language | EN |
| References cited | 3 |
The equivalence between devaluations and particular variations in the stocks of money in the home country and the rest of the world has now been demonstrated several times for flexible-price monetary models (Kemp, 1970; Mundell, 1971, Chapter 9; Kuska, 1972; Dornbusch, 1973a, b; Berglas, 1974). In this paper I wish to extend the analysis by presenting two more equivalence theorems: (1) that between devaluation and equiproportional export subsidies and import tariffs and (2) that between devaluation and transfer payments. Equivalence 1 has been stated in the literature from time to time, but never with complete precision. Equivalence 2 was first suggested by Johnson (1956), but he worked with a model in which the transfer arose from a change in the terms of trade. In flexible-price models, devaluation works through an asset effect so that a different approach is required
Asset (computer security) · Balance of payments · Devaluation · Economics · Equivalence (formal languages) · Exchange rate · Foreign exchange · International economics · Market economy · Monetary economics · Payment · Subsidy · Transfer (computing) · Transfer payment · Computer Science · Economic Theory and Policy · Finance · Fiscal Policy and Economic Growth · Mathematics · Monetary Policy and Economic Impact
| Highly cited | No |
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