A Monetary Examination Of Swedish Balance Of Payments Adjustment

Main Article Content

Richard W. Kjetsaa

Keywords

Swedish balance of payments adjustments, monetary variables, open economy macrofinancial theory

Abstract

The monetary approach to the balance of payments presents an alternative analysis of international imbalance one that highlights and brings to the forefront the role of monetary variables. This open economy macrofinancial theory postulates that external disorders reflect disequilibrium between the demand for and supply of money. The balance of payments is a monetary phenomenon. In this paper both the reserve-flow and exchange market pressure formulations are examined.

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