Current-account effects of a devaluation in an optimizing model with capital accumulation

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Standard

Current-account effects of a devaluation in an optimizing model with capital accumulation. / Nielsen, Søren Bo.

I: Journal of Economic Dynamics and Control, Bind 15, Nr. 3, 1991, s. 569-588.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Nielsen, SB 1991, 'Current-account effects of a devaluation in an optimizing model with capital accumulation', Journal of Economic Dynamics and Control, bind 15, nr. 3, s. 569-588. https://doi.org/10.1016/0165-1889(91)90007-N

APA

Nielsen, S. B. (1991). Current-account effects of a devaluation in an optimizing model with capital accumulation. Journal of Economic Dynamics and Control, 15(3), 569-588. https://doi.org/10.1016/0165-1889(91)90007-N

Vancouver

Nielsen SB. Current-account effects of a devaluation in an optimizing model with capital accumulation. Journal of Economic Dynamics and Control. 1991;15(3):569-588. https://doi.org/10.1016/0165-1889(91)90007-N

Author

Nielsen, Søren Bo. / Current-account effects of a devaluation in an optimizing model with capital accumulation. I: Journal of Economic Dynamics and Control. 1991 ; Bind 15, Nr. 3. s. 569-588.

Bibtex

@article{d926d8f074c611dbbee902004c4f4f50,
title = "Current-account effects of a devaluation in an optimizing model with capital accumulation",
abstract = "This article explores the consequences of a devaluation in the context of a {\textquoteleft}real', optimizing model of a small open economy. What provides for real effects of the devaluation is the existence of nominal wage stickiness during a contract period. We show that if this contract period is relatively short, the devaluation is bound to improve the current account on impact, whereas this will deteriorate in the case of a long contract period, and the more so the smaller are adjustment costs in investment. In addition, we study the consequences for the terms of trade and for the stocks of foreign assets and of capital",
author = "Nielsen, {S{\o}ren Bo}",
year = "1991",
doi = "10.1016/0165-1889(91)90007-N",
language = "English",
volume = "15",
pages = "569--588",
journal = "Journal of Economic Dynamics and Control",
issn = "0165-1889",
publisher = "Elsevier",
number = "3",

}

RIS

TY - JOUR

T1 - Current-account effects of a devaluation in an optimizing model with capital accumulation

AU - Nielsen, Søren Bo

PY - 1991

Y1 - 1991

N2 - This article explores the consequences of a devaluation in the context of a ‘real', optimizing model of a small open economy. What provides for real effects of the devaluation is the existence of nominal wage stickiness during a contract period. We show that if this contract period is relatively short, the devaluation is bound to improve the current account on impact, whereas this will deteriorate in the case of a long contract period, and the more so the smaller are adjustment costs in investment. In addition, we study the consequences for the terms of trade and for the stocks of foreign assets and of capital

AB - This article explores the consequences of a devaluation in the context of a ‘real', optimizing model of a small open economy. What provides for real effects of the devaluation is the existence of nominal wage stickiness during a contract period. We show that if this contract period is relatively short, the devaluation is bound to improve the current account on impact, whereas this will deteriorate in the case of a long contract period, and the more so the smaller are adjustment costs in investment. In addition, we study the consequences for the terms of trade and for the stocks of foreign assets and of capital

U2 - 10.1016/0165-1889(91)90007-N

DO - 10.1016/0165-1889(91)90007-N

M3 - Journal article

VL - 15

SP - 569

EP - 588

JO - Journal of Economic Dynamics and Control

JF - Journal of Economic Dynamics and Control

SN - 0165-1889

IS - 3

ER -

ID: 157994