The Marshall-Lerner condition predicts the circumstances in which a fall in the exchange rate improves the current account of the balance of payments. A devaluation of a currency improves the BoP only if the sum of price elasticities of demand for imports & exports are greater than one. (Condition is that: PedX + PedM > 1).
Collections
From the Reference Library
From the Blog
Online course
Essential A-Level EconomicsUnderstanding Assessment Objectives
- 2-3 hours learning time
- 22 videos, downloads and activities
All A-Level Economics teachers
Edexcel A Level Economics Synoptic Exercise Workbook (Paper 3)Edexcel A Level Economics Synoptic Exercise Workbook (Paper 3)
- SKU: 02-4130-30240-03
Printed Edition
Student personal license
- £7.95
Added to your Shopping Cart!
Edexcel A Level Economics Synoptic Exercise Workbook (Paper 3)
- SKU: 02-4130-30240-03
Printed Edition
- £7.95
Edexcel A-Level Economics Theme 1 Study BookEdexcel A-Level Economics Theme 1 Study Book
- SKU: 02-4130-30348-01
Printed Edition
Student personal license
- £6.95
Added to your Shopping Cart!
Edexcel A-Level Economics Theme 1 Study Book
- SKU: 02-4130-30348-01
Printed Edition
- £6.95