What does the Marshall-Lerner condition look like if the country whose real exchange rate changes does not

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What does the Marshall-Lerner condition look like if the country whose real exchange rate changes does not start out with a current account of zero? (The Marshall-Lerner condition is derived in Appendix 2 under the “standard” assumption of an initially balanced current account.)

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International Economics Theory And Policy

ISBN: 9781292409719

12th Edition

Authors: Paul Krugman , Maurice Obstfeld, Marc Melitz

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