The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Elasticities Approach to the Balance of Payments

  • Murray C. Kemp
Reference work entry


The substance of a theory is independent of the manner in which it is dressed. In particular, it is a matter of style only whether or not formulae are expressed in terms of elasticities of demand and supply, or in terms of ordinary derivatives. To speak of an ‘elasticities approach’ to the balance of payments is therefore to speak no sense at all.


Elasticities approach to the balance of payments Excess demand 

JEL Classifications

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Murray C. Kemp
    • 1
  1. 1.