Page 228 - DECO503_INTERNATIONAL_TRADE_AND_FINANCE_ENGLISH

International Trade and Finance

Notes 19.5 Review Questions

1. What is meant by expenditure reducing? Discuss.
2. Discuss expenditure reducing and expenditure switching policy.
3. What is the Mundellian Policy adjustment? Explain.
Answers: Self-Assessment
1. (i)(d) (ii)(c) (iii)(b) (iv)(c) (v)(c)
(vi)(d)
19.6 Further Readings

1. Dornbusch, Rudiger and Stanley Fischer (1980). \Exchange Rates and the Current
Account." American Economic Review 70, 960 {71.
2. Frenkel, Jacob A. and Michael L. Mussa (1985). \Asset Markets, Exchange Rates,
and the Balance of Payments: The Reformulation of Doctrine." See Jones and
Kenen (1985), pp. 679{747.
3. Isaac, Alan G. (1989). \Wealth E_ects and the Current Account with Endogenous
Terms of Trade." Journal of Macroeconomics 11(4), xxx.
4. Jones, Ronald W. and Peter B. Kenen, eds. (1985). Handbook of International
Economics, Volume 2. Amsterdam: North Holland Publishing Co.
5. Kenen, Peter (1985). \Macroeconomic Theory and Policy: How the Closed
Economy was Opened." See Jones and Kenen (1985), Chapter 13, pp. 625{677.
6. Kouri, Pentti J.K. (1976, May). \The Exchange Rate and the Balance of Payments
in the Short Run and the Long Run: A Monetary Approach." Scandinavian Journal
of Economics 78(2), 280{304.

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