A Model of Adjustment and Growth: An Empirical Analysis

42 Pages Posted: 15 Feb 2006

See all articles by Carmen M. Reinhart

Carmen M. Reinhart

Peter G. Peterson Institute for International Economics; National Bureau of Economic Research (NBER)

Date Written: April 13, 1989

Abstract

This paper develops a model merging the monetary approach to the balance of payments and a neoclassical growth model into a unified framework in which inflation, growth, and the balance of payments are simultaneously determined. The empirical part of the paper presents estimates of the key parameters of the model for a sample of seven diverse developing countries and tests the validity of a subset of the theoretical assumptions. The estimated model is then used for a variety of comparative static exercises, including the effects of fiscal and monetary policy changes, and devaluation.

JEL Classification: 1211, 4300

Suggested Citation

Reinhart, Carmen M., A Model of Adjustment and Growth: An Empirical Analysis (April 13, 1989). IMF Working Paper, Vol. , pp. 1-42, 1989. Available at SSRN: https://ssrn.com/abstract=884712

Carmen M. Reinhart (Contact Author)

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
66
Abstract Views
365
rank
345,202
PlumX Metrics