The Positively Sloped IS Curve and the Balance of Payments: An Extension of Cebula’s Model
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The Positively Sloped IS Curve and the Balance of Payments: An Extension of Cebula’s Model
Credit and Capital Markets – Kredit und Kapital, Vol. 15 (1982), Iss. 2 : pp. 275–279
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Yannacopoulos, Nicos A.
References
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Abstract
The Positively Sloped IS-Curve and the Balance of Payments: An Extension of Cebula’s Model
This paper deals with the effects of monetary and fiscal policy on the balance of payments within the framework of Cebula’s model, under a fixed exchange rate regime, and compares them with the results obtained by Barrows for the Silber-Barrows model. It is found that the different assumptions on which Cebula’s and Silber- Barrows model are based affect only the conditions under which an expansionary monetary policy affects the balance of payments. The conditions for the effects of the fiscal policy remain the same in both models,