Heterodox
Thirlwall’s law was formulated by Anthony Thirlwall.Here is a basic statement of the law:“Thirlwall’s law (named after Anthony Thirlwall) states that if long run balance of payments equilibrium on current account is a requirement, and the real exchange rate stays relatively constant, then the long run growth of a country can be approximated by the ratio of the growth of exports to the income elasticity of demand for imports (Thirlwall, 1979).If the real exchange rate varies considerably, but...
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