Accession Number : AD0678891

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

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : Nelson,Richard R.

Report Date : NOV 1968

Pagination or Media Count : 68

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, Colombia's 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)

Descriptors :   (*ECONOMICS, COLOMBIA), COMMERCE, FOREIGN POLICY, COFFEE, EMPLOYMENT, MATHEMATICAL MODELS, GROWTH(PHYSIOLOGY), NUMERICAL METHODS AND PROCEDURES

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE