Monetary Approach to Balance of Payments Adjustment | Economics
The monetary approach to the balance of payments is associated with the names of R. Mundell and H. Johnson. The other writers who have made contribution to it include R. Dornbusch, M. Mussa, D. Kemp and J. Frankel. The basic premise of the approach is the recognition that the BOP disequilibrium is fundamentally a monetary phenomenon. It attempts to explain [...]