Accession Number:

AD0678891

Title:

THE EFFECTIVE EXCHANGE RATE, EMPLOYMENT, AND GROWTH IN A foreign exchange constrained economy,

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CALIF

Personal Author(s):

Report Date:

1968-11-01

Pagination or Media Count:

68.0

Abstract:

An analysis of how the effective exchange rate--the price of foreign exchange relative to domestic factor prices--influences the balance of payments constraint and, hence, Colombias ability to achieve faster growth and higher employment. The conventional two-gap models lead to the pessimistic conclusion that Colombia cannot increase its growth rate without increases in foreign assistance and, therefore, that the level of the effective exchange rate is not of particular policy concern. A model is developed that admits the possibility of substituting domestic inputs for both intermediate and capital goods imports. Author

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE