The Geometric Representation of Policies to Attain Internal and External Balance

The Exports Transmission Mechanism of Foreign Business Cycles to Australia

“…GDP less exports) is 0.16. 8 In a sense, the 'switching' argument set out in this paper is similar to the expenditure switching aspects of the absorption approach to the balance of payments as developed in a classic series of papers by Alexander (1952), Meade (1952), Swan (1955), Salter (1959), Corden (1960), Mundell (1962) and Tsiang (1969). Although explanations of the absorption approach tend to highlight the impact of changes in expenditure on imports the arguments also apply to exports.…”

An Australian Contribution to International Trade Theory: The Dependent Economy Model

“…He also used his model to graphically illustrate the futility of an expenditure‐switching policy alone at or above full employment. Since the success of such a policy relies on a reduction in real absorption, Corden (, p. 17) states that expenditure reduction is the correct instrument to associate with external balance when an economy is fully employed.…”

“…Although the internal and external balance curves in the Swan diagram trace out internal and external equilibria for different relative prices and levels of real expenditure, Swan did not explain how the curves were derived. Corden (, p. 20) pointed this out in his own paper when he described the Swan diagram as being ‘magnificently simple’ but added that it was ‘a clock without a visible mechanism. It does not show how the internal and external balance curves are derived.’ Dornbusch addressed this by showing how the Swan diagram can be derived from the Salter model…”

La sobrevaloración del tipo de cambio real de la economía española

“…Estas cifras no son ajenas a una transferencia de fondos desde Alemania a España durante los años anteriores a la crisis económica, realizada mediante créditos del sistema bancario alemán al sistema privado español, tal y como lo atestiguan las cifras del Banco Internacional de Pagos 4 . Utilizando el modelo de bienes comercializables y no comercializables (en lo sucesivo, modelo TNT) la situación que -(1960), y utilizado posteriormente por Corden (1960) y Dornbusch (1974, entre otros 5 . Las condiciones productivas -yos puntos constituyen todas las combinaciones de bienes T y de bienes N que pueden alcanzarse con el pleno empleo de los factores productivos, capital y trabajo 6 .…”