Marshall- Lerner Condition And Current Account Sustainability

In this chapter, I present an analytical reformulation of the Marshall-Lerner condition under the assumption that the independence of the GDP from the exchange rate cannot be postulated in open economies in which the foreign trade flow/GDP ratio is high. This paper attempts to analyze how, in open economies in which the export and import flow/GDP ratio is very high, independence between the GDP and the exchange rate is not a plausible assumption, so the traditional version of the Marshall-Lerner condition is not sustained.

Autorentext

Professor at the Department of Economic Theory and Mathematical Economics, PhD in Economic Sciences, UNED, author of books and scientific articles on Macroeconomics and International Trade in national and international journals such as Economic Modeling, Applied Economics, Review of Economics and Finance , ICE, etc.