JOURNAL ARTICLE
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Beschäftigungseflekte in makroökonomischen Modellen offener Volkswirtschaften mit flexiblen Wechselkursen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 1 : pp. 61–81
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Sauernheimer, Karlhans
Abstract
It is well known that an expansionary monetary policy under flexible exchange rates stimulates aggregate demand, production and employment by way of lowering interest rates and depreciating the home currency. The expansion, however, is based on money illusion. Relaxing this assumption, nominal wages will rise in order to compensate the loss in real purchasing power, which results from rising import prices following the depreciation. Production falls and reduces employment. On the other hand, fiscal expansion or higher incomes abroad, which produce revaluations of the home currency, gain additional forces via the lowering of import prices and wages.