Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
You write out the general price level as the price of domestically produced goods times 1-IQ plus foreign goods times IQ, and then you look at the case where the nominal exchange rate is 1 and the case where the real exchange rate is 1 (and assume sticky nominal prices and constant import quota).

- Jake

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by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Apr 9th, 2011 at 06:05:53 PM EST
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