The monetary approach to balance of payments: a taxonomy with a comprehensive reference to the literature.(ECONOMICS ARTICLES) From: Journal of Economics and Economic Education Research | Date: September 1, 2005| Author: Ardalan, Kavous | COPYRIGHT 2005 The DreamCatchers Group, LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

ABSTRACT

This paper provides a taxonomy of the monetary approach to the balance of payments with a comprehensive reference guide to the literature. The paper very briefly reviews the three major alternative theories of balance of payments adjustments. These theories are the elasticities and absorption approaches (associated with Keynesian theory), and the monetary approach. The paper focuses on the monetary approach to balance of payments and points to the long-run and s...

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