Working Paper

International Adjustment in the New Neoclassical Synthesis

Kiel Working Papers, 1345

This paper applies principles of the New Neoclassical Synthesis (NNS) to questions of international trade and financial adjustment. The analytical framework is a 2-country, 2-good, 2- period model designed to explore the behavior of the balance of payments, the terms of trade, and aggregate fluctuations in terms of interest rate and exchange rate policies practiced by the world's most important central banks.


Marvin Goodfriend


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