What does the Marshall-Lerner condition look like if the country whose real exchange rate changes does not
Question:
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.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
International Economics Theory And Policy
ISBN: 9781292409719
12th Edition
Authors: Paul Krugman , Maurice Obstfeld, Marc Melitz
Question Posted: