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The impact of supply shocks on exchange rates and interest rates: Does the Marshall-Lerner condition matter?

✍ Scribed by Colin Lawrence

Book ID
117140320
Publisher
Elsevier Science
Year
1987
Tongue
English
Weight
818 KB
Volume
22
Category
Article
ISSN
0022-1996

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## Abstract A typical finding in the empirical literature is that import and export demand elasticities are rather low, and that the Marshall–Lerner (ML) condition does not hold. However, despite the evidence against the ML condition, the consensus is that real devaluations do improve the balance o