Question
Suppose that a good productivity shock hits a small open economy, and that the productivity shock is very persistent. First make an argument whether the
Suppose that a good productivity shock hits a small open economy, and that the productivity shock is very persistent. First make an argument whether the current account of this economy improves or deteriorates in responding to the shock. Second, explain the current account movement (Hint: all three views must be consistent with each other).
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
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