TESTING THE MONETARY APPROACH TO DEVALUATION IN DEVELOPING COUNTRIES
In: Journal of political economy, Band 84, Heft 4, S. 849-860
ISSN: 0022-3808
THE MONETARY APPROACH TO THE BALANCE OF PAYMENTS SUGGESTS THAT SURPLUSES AND DEFICITS ARE ESSENTIALLY ADJUCTMENT PHENOMENA WHICH SERVE TO EQUILIBRATE THE MONEY STOCK IN EXISTENCE TO THE QUANTITY DEMANDED IN AN OPEN ECONOMY. THE PURPOSE OF THE PAPER IS TEST THE MONETARY APPROACH TO DEVALUATION FROM A SAMPLE OF 18 INDEPENDANT DEVALUATIONS THAT TOOK PLACE IN DEVELOPING COUNTRIES DURING THE 1959-70 PERIOD.