Technology, capital flows and the balance of payments constraint in a structuralist north-south model

Authors

  • Marcelo Curado Programa de Pós-Graduação em Desenvolvimento Econômico -- PPDE da Universidade Federal do Paraná
  • Gabriel Porcile Programa de Pós-Graduação em Desenvolvimento Econômico -- PPDE da Universidade Federal do Paraná

Keywords:

structuralist macroeconomic models, balance-of-payments-constrained growth

Abstract

This paper presents a North-South model which combines a demand curve for foreign exchange, based on the Keynesian Balance-of-Payments-constrained-growth theory, and a supply curve, based on the principle of increasing risks, which is nonlinear on the interest rate. The dynamics of the model describes a situation of external fragility in economies facing problems of international competitiveness, in which external desequilibrium recurrently puts a downward pressure on the rate of growth and favors exchange rate devaluation in Southern economies.   

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Published

2019-11-07

Issue

Rev. Econ. Contemp., v. 6, n. 2, jul./dez. 2002

Section

Artigos

License

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