The monetary approach to the balance of payments.
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The monetary approach to the balance of payments. A collection of research papers by members of the staff of the International Monetary Fund. by International Monetary Fund.

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Published in Washington, D.C .
Written in English

Subjects:

  • Money,
  • Balance of payments

Book details:

The Physical Object
Paginationx, 290 p. ;
Number of Pages290
ID Numbers
Open LibraryOL18792522M

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This is a review article of the theoretical papers in The Monetary Approach to the Balance of Payments, edited by Jacob A. Frenkel and Harry G. paper concentrates on: (a) The difficulties which there appear to be in the theoretical models used as a main vehicle of analysis and (b) the question of whether and in what circumstances the excess demand for financial assets is Cited by: This volume brings together several of the most important research papers on the monetary approach to the balance of payments prepared by IMF staff members. The 11 papers record, the contribution made by the IMF's staff to the development of the monetary approach, which is now widely accepted by academic economists and policymakers alike.   The monetary approach – initiated by Robert Mundell – is perfectly coherent with the well-established elements of monetary theory. As such, it has to be considered as the theory which allows understanding of the determination of the balance of payments (and, more generally, the determination of prices, monetary flows, and so on). Define high-powered money in terms of the balance sheet items, such that. Every change in high-powered money is associated with changes in R and/or changes in all domestic influences on the balance sheet, summarised by the variable D. Substituting (2) into (1) gives the money supply formula. Demand for money is given the simple form: (3) (4) (5).

The fundamental insight of the monetary approach is that the balance of payments is essentially a monetary phenomenon. The very concept of a balance of payments implies the existence of money; as one writer puts it, "Indeed, it would be impossible to have a balance-of-payments surplus or deficit in a barter economy.". Abstract. As we said in the introductory remarks in Chapter 2, the focus of the monetary approach to the balance of payments is on the balance of payments as a whole (the current and the capital account) so that a balance-of-payments disequilibrium is equivalent to a change in the level of international : A. P. Thirlwall. The Monetary Approach to the Balance of The Monetary Approach to the Balance of Payments with an Empirical Application to the Case of Panama George H. Borts & James A. Hanson. Abstract. The supporters of the monetary approach to the balance of payments (MABP) claimed their allegiance to David Hume (), considered the author of the first complete formulation of the classical theory of the mechanism for the adjustment of the balance of payments based on the flows of money .

THE MONETARY APPROACH TO BALANCE-OF-PAYMENTS THEORY Harry G. Johnson* My purpose in this paper is to outline a new approach to the theory of the balance of payments and of balance-of-payments adjustment (including devaluation and revaluation) that has been emerging in recent years from several sources. Monetary Approach to the Balance of Payments: A Collection of Research Papers, Paperback by International Monetary Fund, ISBN X, ISBN , Like New Used, Free shipping in the US Seller Rating: % positive. This book collects together the basic documents of an approach to the theory and policy of the balance of payments developed in the s. The approach marked a return to the historical traditions of international monetary theory after some thirty years of departure from them – a departure occasioned by the international collapse of the s.   This book collects together the basic documents of an approach to the theory and policy of the balance of payments developed in the s. The approach marked a return to the historical traditions of international monetary theory after some thirty years of departure from them – a departure occasioned by the international collapse of the s, the Keynesian Revolution and a long period of Brand: Taylor And Francis.