Chapter 10 International Transfer under Stagnation

Ono, Yoshiyasu

doi:10.1016/s1574-8715(06)01010-4

Cited by 2 publications

(2 citation statements)

References 21 publications

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“…There are open-economy extensions of the dynamic stagnation model, e.g. Ono (2006Ono ( , 2007Ono ( , 2014Ono ( , 2018, Johdo and Hashimoto (2009) and Hashimoto (2011Hashimoto ( , 2015, but they use a two-country setting and have much more complicated frameworks. The present analysis treats a small country case and has a simple structure comparable to the Mundell-Fleming model.…”

Section: Introductionmentioning

confidence: 99%

A simple aggregate demand analysis with dynamic optimization in a small open economy

Hashimoto

Ono

2020

Economic Modelling

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We develop an aggregate demand analysis of a small open economy based on all agents' dynamic optimization. Murota and Ono (2015) present a simple Keynesian cross analysis with dynamic optimization. This paper extends it to a small-country setting with two factors and two commodities, of which the structure is as simple as the conventional Keynesian cross analysis. We apply the model to examine the effects of changes in various parameters, such as the terms of trade, foreign asset holdings and government purchases, on aggregate demand. They are quite different from those under full employment and those of the Mundell-Fleming model.

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Section: Introductionmentioning

confidence: 99%

A simple aggregate demand analysis with dynamic optimization in a small open economy

Hashimoto

Ono

2020

Economic Modelling

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“… This issue was treated by Ono () but he used constant elasticity of substitution utility functions. This paper extends that analysis to the case of general homothetic utility. …”

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Macroeconomic Interdependence Between a Stagnant and a Fully Employed Country

Ono

2017

Jpn Econ Rev

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This paper presents a two‐country two‐commodity dynamic model where one country achieves full employment and the other suffers from secular stagnation of aggregate demand. Own and spillover effects of changes in preference, productivity and policy parameters are examined. Parameter changes that improve the stagnant country's current account, such as a reduction in government purchases, a decrease in foreign aid and an improvement in productivity, raise the relative price of the home commodity. Consequently, home employment shrinks, deflation worsens and consumption decreases. The terms of trade for the full‐employment country deteriorate. Thus, income and consumption decrease in both countries.

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Chapter 10 International Transfer under Stagnation

Cited by 2 publications

References 21 publications

A simple aggregate demand analysis with dynamic optimization in a small open economy

A simple aggregate demand analysis with dynamic optimization in a small open economy

Macroeconomic Interdependence Between a Stagnant and a Fully Employed Country

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