EXCHANGE RATE POLICY WHEN THE LABOUR MARKET EXHIBITS HYSTERESIS(*)

Article Abstract:

Currency devaluation can have beneficial effects in the long term under conditions of labor market hysteresis. Analysis suggests the Irish devaluation of 1993 could have been increased significantly. The effects of changes in exchange rate are examined for a three-sector small open economy under full employment with a perfectly flexible labor market. The model is then extended to cover labor-market hysteresis.

Economic aspects, Ireland, Economic policy, Foreign exchange, Labor market, Currency devaluation, Devaluation (Currency)

---

Linear-quadratic solution methods to non-linear stochastic models: a note

Article Abstract:

Linear-quadratic solution methods are effective in providing solution to nonlinear rational expectations models. Closed form solutions are generally unavailable in nonlinear rational models. No specific software program can provide the solutions. The linear-quadratic methods offer solutions and require the least amount of change to the basic program for the nonlinear model.

Methods, Analysis, Rational expectations (Economics), Nonlinear theories

---

Adjustment asymmetries and hysteresis in simple dynamic models

Article Abstract:

Disequilibrium time paths containing variables that display adjustment asymmetries are able to generate hysteresis without unit root existence. Despite formal models that first-order difference equations require unit roots, endogenous variable behavior can create hysteresis irrespective of unit roots. Such variables include an alleged exogenous argument or coefficient.

Usage, Hysteresis, Hysteresis (Physics), Variables (Mathematics)

Similar abstracts:

• Abstracts: Quien decide que movil se vende SPAIN: MOTOROLA AIMS FOR MARKET SHARE. El ave del AVE
• Abstracts: SPAIN: LAFARGE TO CEMENT ITS POSITION. SPAIN: NEW MD FOR AUSYSEGUR. SPAIN: NEW MD FOR MIDAS KAPITI INTERNACIONAL
• Abstracts: On the formation of political coalitions. MONETARY REGIMES AS INSURANCE SCHEMES. OLD WINE IN NEW BOTTLES?(*). The political choice and collapse of fixed exchange rates
• Abstracts: ICAM Asia 98: a learning opportunity. MPAC's impact in Asia. Swiss engineers target Asia
• Abstracts: A sea of change. Vital elements in a burgeoning market

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.