External shocks
Neary, J. P.
(1994).
External shocks.
(CEPDP 187).
London School of Economics and Political Science. Centre for Economic Performance.
This paper examines the responsiveness of real income and the balance of payments to external shocks in a small open economy. It is shown that tariff restrictions and wage rigidities tend to increase responsiveness and quota restrictions tend to reduce it. The implications for policy response are considered and a micro-theoretic foundation for the distinction between expenditure-reducing and expenditure-switching policies is provided.
| Item Type | Working paper |
|---|---|
| Copyright holders | © 1994 J.P.Neary |
| Departments | LSE > Research Centres > Centre for Economic Performance |
| Date Deposited | 18 Aug 2008 |
| URI | https://researchonline.lse.ac.uk/id/eprint/20912 |