Monetary-Fiscal Policy and Economic Growth in an Open Economy

Abstract

Introduction, 614. — I. Equilibrium growth in an open economy, 615; — aggregate relationships, 615; — equilibrium growth conditions, 619. — II. International economic dependence, 621; — relation of domestic to foreign growth rate, 621; — role of net balance of international indebtedness, 625. — III. Monetary-fiscal policy and growth, 627; — role of monetary-fiscal instruments, 627; — alternative combinations and limits, 629. — IV. Conclusions, 632.