Money, Consumption, and Terms-of-Trade Dynamics: A Note to Dornbusch and Mussa
用开放经济数量论模型分析产出永久增长对货币收入、国际储备、消费和贸易条件的短期与长期影响，结论取决于进口需求弹性。
This paper uses an open-economy quantity-theory model to show that a permanent increase in output leads to an increase in money income and international reserves in the long run and a decrease in consumption and overshooting of the terms of trade in the short run, if import demands are relatively elastic. The opposite is true if import demands are relatively inelastic. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.