Short run savings fluctuations and export shocks: theory and evidence for Latin-America

Borradores de Economia
Number: 
48
Published: 
Classification JEL: 
E32, E37

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A basic theoretical of a small open economy within the framework of intertemporal maximization is used to analyze the effects of nominal export shocks. The model helps in explaining the close relationship that is found between export shocks and short run