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The Dual Roles of the Government Budget and the Balance of Payments in the Movement From Short-Run to Long-Run Equilibrium

Quarterly Journal of Economics 1976 90(3), 345
I. Introduction and background, 346.—II. A two-asset model with trade, 349.—III. Instantaneous equilibrium with a flexible exchange rate, 355.—IV. Stock equilibrium with a flexible exchange rate, 357.—V. Monetary and fiscal policy reconsidered, 361.—VI. Stock equilibrium with a fixed exchange rate, 364.—Appendix: Determinant condition for stock equilibrium, 366.