Exchange Currency

Marshall-Lerner condition

The condition that the sum of the elasticities of demand for exports and imports exceed one (in absolute value); that is, ?X + ?M > 1, where ?X, ?M are the demand elasticities for a country's exports and imports respectively, both defined to be positive for downward sloping demands. Under certain assumptions, this is the condition for a depreciation to improve the trade balance, for the exchange market to bestable, and for international barter exchange to be stable.

Related information about Marshall-Lerner condition:
  1. Marshall–Lerner condition - Wikipedia, the free encyclopedia
    The Marshall–Lerner condition (after Alfred Marshall and Abba P. Lerner) has been cited as a technical reason why a reduction in value of a nation's currency ...
     
  2. The Marshall-Lerner Condition - YouTube
    Nov 10, 2011 ... This video explains the Marshall-Lerner Condition for determining whether a depreciation of a nation's currency will improve or worsen its ...
     
  3. The Marshall-Lerner Condition, the J-curve, and the US trade deficit ...
    Dec 12, 2008 ... For a video lesson on the Marshall Lerner Condition and the J-curve, click here: The Marshall-Lerner Condition (HL Only) | The Economics ...
     
  4. Marshall Lerner condition
    The Marshall-Lerner condition, which states that a currency devaluation will only lead to an improvement in the balance of payments if the sum of demand ...
     
  5. Marshall-Lerner Condition The Marshall-Lerner condition
    The Marshall-Lerner condition (also called the Marshall-Lerner-Robinson, hereafter, MLR, condition) is at the heart of the elasticities approach to the balance of ...
     
  6. The Marshall-Lerner Condition
    Sep 26, 2012 ... Here are two videos from Jason Welker which give an indepth look at the theory of the Marshall-Lerner Condition and the J Curve; topics that ...
     
  7. Does the Marshall-Lerner Condition hold in China ... - CiteSeer
    positive research to the applicability of the Marshall-Lerner Condition to China. ... Marshall-Lerner Condition, namely, if the sum (in absolute value) of elasticity of ...
     
  8. A Note on Teaching the Marshall-Lerner Condition Dennis R - JStor
    If, in addition, one assumes that trade is initially in balance, the Marshall-Lerner condition states that devaluation will improve the trade balance if the sum of the ...