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Kaldorian dynamics in an open economy

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Abstract

In this paper, we formulate a Kaldorian business-cycle model in a small open economy. We consider the possibility of capital mobility, and both the system of fixed exchange rates and that of flexible exchange rates are studied. We investigate how changes of the parameter which represents the “degree of capital mobility” affect the dynamic characteristics of the model. Some numerical simulations are performed based on the analytical model.

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  1. Toichiro Asada

    Present address: Faculty of Economics, Chuo University, 742-1 Higashinakano, 192-03, Hachioji, Tokyo, Japan

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    Asada, T. Kaldorian dynamics in an open economy. Zeitschr. f. Nationalökonomie 62, 239–269 (1995). https://doi.org/10.1007/BF01238819

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    • DOI: https://doi.org/10.1007/BF01238819

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