Economics Department Working Paper Series
Title
Real exchange rates and the long-run effects of aggregate demand in economies with underemployment
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