Does Devaluation Improve the Current Account

@inproceedings{Gylfason1984DoesDI,
  title={Does Devaluation Improve the Current Account},
  author={Thorvaldur Gylfason and Ole Risager},
  year={1984}
}
This paper incorporates the link between devaluation, foreign interest payments, and the current acccount into a fairly general macroeconomic model in which exchange rate changes influence aggregate demand through exports, imports, and expenditures as well as aggregate supply via the cost of imported factors of production. On the basis of avaliable statistical estimates of the behavioral and structural parameters of the model, an attempt is mafe to assess the empirical importance of this link… CONTINUE READING

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