Currency Depreciation, Income, and the Balance of Trade

@article{Harberger1950CurrencyDI,
  title={Currency Depreciation, Income, and the Balance of Trade},
  author={Arnold C. Harberger},
  journal={Journal of Political Economy},
  year={1950},
  volume={58},
  pages={47 - 60}
}
EXISTING discussions of the effects of depreciation on the balance of trade are framed in terms of a model in which incomes do not appear explicitly in the demand equations for imports and are thus implicitly assumed to be constant. Some writers have contended that the conditions for improvement in the balance of trade, obtained from such a model, are directly applicable to "Keynesian" models in which national incomes are variable. The purpose of the present paper is to investigate the validity… 

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