Theory and Policy of Adjustment in an Open Economy.
This paper presents a non-technical introduction to the analysis of how an open economy adjusts to exogenous shocks. Three alternative models of adjustment are considered, each one appropriate to a different time horizon: the specific-factors model with transitional unemployment for the short run; t...
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| Format: | Working paper |
| Language: | English |
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CEPR
1985
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| _version_ | 1797060910180728832 |
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| author | Neary, J |
| author_facet | Neary, J |
| author_sort | Neary, J |
| collection | OXFORD |
| description | This paper presents a non-technical introduction to the analysis of how an open economy adjusts to exogenous shocks. Three alternative models of adjustment are considered, each one appropriate to a different time horizon: the specific-factors model with transitional unemployment for the short run; the Heckscher-Ohlin model with temporary capital specificity for the medium run; and a new model of growth and structural change for the long run. Consideration is also given to the choice of policies towards the adjustment process, from both a welfare economic and a political economy perspective. |
| first_indexed | 2024-03-06T20:23:37Z |
| format | Working paper |
| id | oxford-uuid:2ea8edc0-35e7-4a30-a23e-5bb63b15ab93 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T20:23:37Z |
| publishDate | 1985 |
| publisher | CEPR |
| record_format | dspace |
| spelling | oxford-uuid:2ea8edc0-35e7-4a30-a23e-5bb63b15ab932022-03-26T12:50:15ZTheory and Policy of Adjustment in an Open Economy.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:2ea8edc0-35e7-4a30-a23e-5bb63b15ab93EnglishDepartment of Economics - ePrintsCEPR1985Neary, JThis paper presents a non-technical introduction to the analysis of how an open economy adjusts to exogenous shocks. Three alternative models of adjustment are considered, each one appropriate to a different time horizon: the specific-factors model with transitional unemployment for the short run; the Heckscher-Ohlin model with temporary capital specificity for the medium run; and a new model of growth and structural change for the long run. Consideration is also given to the choice of policies towards the adjustment process, from both a welfare economic and a political economy perspective. |
| spellingShingle | Neary, J Theory and Policy of Adjustment in an Open Economy. |
| title | Theory and Policy of Adjustment in an Open Economy. |
| title_full | Theory and Policy of Adjustment in an Open Economy. |
| title_fullStr | Theory and Policy of Adjustment in an Open Economy. |
| title_full_unstemmed | Theory and Policy of Adjustment in an Open Economy. |
| title_short | Theory and Policy of Adjustment in an Open Economy. |
| title_sort | theory and policy of adjustment in an open economy |
| work_keys_str_mv | AT nearyj theoryandpolicyofadjustmentinanopeneconomy |