Teaching Post Keynesian exchange rate theory

The goal of this paper is to provide a model and method for those wishing to include the Post Keynesian perspective when teaching exchange rate theory. It begins by reviewing neoclassical approaches (purchasing power parity, the monetary model, and the Dornbusch model) and then develops a graphical...

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Bibliographic Details
Published inJournal of post Keynesian economics Vol. 30; no. 2; pp. 147 - 168
Main Author Harvey, John T.
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 01.12.2007
M. E. Sharpe
M.E. Sharpe, Inc
Taylor & Francis Ltd
SeriesJournal of Post Keynesian Economics
Subjects
Currency
Dornbusch model
Economic expectations
Economic models
Economics
Exchange rates
Financial theory
Foreign exchange rates
Interest rates
Keynesian theory
Keynesianism
Macroeconomics
Monetary economics
monetary model
Money supply
Post Keynesian
Post Keynesian economics
Purchasing power parity
Studies
teaching economics
Teaching of economics
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Summary:The goal of this paper is to provide a model and method for those wishing to include the Post Keynesian perspective when teaching exchange rate theory. It begins by reviewing neoclassical approaches (purchasing power parity, the monetary model, and the Dornbusch model) and then develops a graphical Post Keynesian model that is based on Keynes's Z-D diagram, endogenous money, a currency market driven by portfolio capital flows, and no assumption of a tendency toward full employment or balanced trade. The model is then used to look at historical examples and policy.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0160-3477
1557-7821
DOI:10.2753/PKE0160-3477300201