The Assignment Problem and the Speed of Adjustment

Date
1979
Authors
Enders, Walter
Lapan, Harvey
Lapan, Harvey
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Altmetrics
Authors
Research Projects
Organizational Units
Economics
Organizational Unit
Journal Issue
Series
Department
Economics
Abstract

Mundell [20] demonstrated that in order to achieve balance of payments equilibrium and full employment, monetary policy should be paired with external balance and fiscal policy with Internal balance. The fundamental problem posed by Mundell concerned the methods governmental authorities should utilize to insure that both internal and external balance would be achieved when the underlying structural parameters of the economy were unknown. Mundell argued that the assignment of monetary policy to external balance and fiscal policy to Internal balance followed from the Principle of Effective Market Classification [20, p.76j: "Policies should be paired with objectives on which they have the most direct effect."

Comments
Description
Keywords
Citation
DOI
Source
Collections