The Balance-of-Payments-Constrained Growth Model: A North-South Approach (2005), Journal of Post Keynesian Economics, Vol. 29, N° 1, pp. 67-92. Itdevelops a general extended version of the balance-of-payments constrained growth model. The extension takes into account trade imbalances and the importance of net financial flows in the long-run, relative price changes caused by idiosyncratic rules of adjustment in prices, and trade and payments interdependence among asymmetric regions. Contingent on parameters values of each region, we found that an exogenous change in the rate of growth of financial transfers may generate either a mutually reinforcing growth regime or a conflicting growth regime.
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