Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Devaluation, Profitability and Investment: A Model with Anticipated Future Wage Adjustment
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1984 (English)Report (Other academic)
Abstract [en]

This paper studies the role of devaluation in stimulating profitability, investment and economic activity in a rational expectations model with wage contracts which inject an element of short-term nominal wage rigidity.

It is shown that when real wages are expected to be restored through post-devaluation negotiations then devaluation sets off a cyclical path in the optimal investment rate. The effect on the trade balance in the short term is uncertain, because devaluation increases both saving and investment. Devaluation is in this case neutral with regard to all real variables in the long run.

Place, publisher, year, edition, pages
Stockholm: IIES , 1984. , 31 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 287
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41288OAI: oai:DiVA.org:su-41288DiVA: diva2:329321
Available from: 2010-07-09 Created: 2010-07-09 Last updated: 2010-07-09Bibliographically approved

Open Access in DiVA

fulltext(3661 kB)84 downloads
File information
File name FULLTEXT01.pdfFile size 3661 kBChecksum SHA-512
e95656907a41fc2c1c9315098cd3264bb75b7fbf9c21020ef26cf08246bec2ad501c1965afe64f979e0be9353c460f09897a1c9662f3afbf4735d35c3a19da4d
Type fulltextMimetype application/pdf

By organisation
Institute for International Economic Studies
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 84 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 47 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf