On the Almost Total Inadequacy of Keynesian Balance-of-Payments Theory.

The article criticizes various models in the Keynesian balance-of-payments under the assumption of fixed exchange rates. It asserts that almost all of the models in the Keynesian balance-of-payments literature suffer from internal contradictions and deficiencies which make them unsuitable for the th...

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Detalles Bibliográficos
Publicado en:American Economic Review Vol. 68; no. 4; pp. 659 - 671
Autor principal: Kuska, Edward A.
Formato: Artículo
Publicado: American Economic Association Sep78
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:The article criticizes various models in the Keynesian balance-of-payments under the assumption of fixed exchange rates. It asserts that almost all of the models in the Keynesian balance-of-payments literature suffer from internal contradictions and deficiencies which make them unsuitable for the theory of balance-of-payments. Even a double Keynesian closed economy equations do not provide an appropriate description of the international economy. And because of this, careful attention must be given to portraying the money markets than is usually the case, and assets must be included in the various demand functions in any acceptable analysis.