Nontraded Goods and Macroeconomic Policy Under a Fixed Exchange Rate*
I. Introduction, 469—II. The analytical framework, 469.—III. Fiscal policy, 473.—IV. Exchange rate adjustments, 475.—V. Summary, 478.—Appendix A: Proof of Proposition 1, 479.—Appendix B: Proof of Proposition 2, 480.