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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18013| Title: | Technology Shocks and Employment in Open Economies |
| Keywords: | E24 F41 E32 ddc:330 Open economy macroeconomics technology shocks employment Technischer Fortschritt Schock Makroökonomischer Einfluss Beschäftigung Gesamtwirtschaftliche Produktion Offene Volkswirtschaft Zwei-Länder-Modell Allgemeines Gleichgewicht Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | A growing body of empirical evidence suggests that a positive technology shock leads to a temporary decline in employment. A two-country model is used to demonstrate that the open economy dimension can enhance the ability of sticky price models to account for the evidence. The reasoning is as follows. An improvement in technology appreciates the nominal exchange rate. Under producer-currency pricing, the exchange rate appreciation shifts global demand toward foreign goods away from domestic goods. This causes a temporary decline in domestic employment. If the expenditure-switching effect is sufficiently strong, a technology shock also has a negative effect on output in the short run. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18013 |
| Other Identifiers: | Economics: The Open-Access, Open-Assessment E-Journal 1 2007-15 1-27 doi:10.5018/economics-ejournal.ja.2007-15 doi:10.5018/economics-ejournal.ja.2007-15 http://hdl.handle.net/10419/18013 ppn:55597555X http://www.economics-ejournal.org/economics/journalarticles/2007-15 RePEc:zbw:ifweej:6812 |
| Appears in Collections: | EconStor |
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