Real exchange rates and the long-run effects of aggregate demand in economies with underemployment

Authors

Peter Skott, University of Massachusetts AmherstFollow
Martin Rapetti, University of Massachusetts AmherstFollow
Arslan Razmi, University of Massachusetts-AmherstFollow

Working Paper Number

2012-06

Publication Date

2012

Abstract

Successful economic development to a large extent derives from the mobilization of underemployed resources. Demand policy can play an important role. It is critical, however, to consider balance of payments constraints and to ensure an expansion of investment in the modern sector. A combination of investment promotion and exchange rate intervention may be required to achieve these goals.

DOI

https://doi.org/10.7275/3317900

Recommended Citation

Skott, Peter; Rapetti, Martin; and Razmi, Arslan, "Real exchange rates and the long-run effects of aggregate demand in economies with underemployment" (2012). Economics Department Working Paper Series. 146.
https://doi.org/10.7275/3317900