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Employment and the Balance of Trade for a Small Open Economy with a Phillips Curve

Published online by Cambridge University Press:  17 August 2016

Howard C. Petith
Howard C. Petith*
Affiliation:
University College, Swansea
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Extract

It is now common to encounter references to Phillips’ curves when the problems of particular trading nations are being discussed in academic journals. In addition there are a smaller number of papers which provide a theoretical analysis of one aspect or another of a Phillips curve augmented model of the balance of payments. But to the author’s knowledge, there is no simple account available of the general results which follow from adding a Phillips relation to a Keynesian model of a small open economy. The purpose of this paper is to give such an account and then to provide a brief discussion of the possible extensions and the problems inherent in this approach to the balance of payments.

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 43 , Issue 1 , March 1977 , pp. 67 - 73
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1977 

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