Since 2014
A Synthetic Macro-economic Model Integrating Interest, Exchange and Tax Rates
Euro-Asian Journal of Economics and Finance
View Archive Info| Field | Value | |
| Title |
A Synthetic Macro-economic Model Integrating Interest, Exchange and Tax Rates
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| Creator |
Ye, Fred Y.
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| Subject |
Macro-economic model; Mundell-Fleming model; money supply; Laffer curve; interest rate; exchange rate; tax rate; inflation
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| Description |
In economics, interest rate, exchange rate and tax rate are three key ratios for economic analysis. However, they have no unified relations in existing economic models. Combining Mundell–Fleming model, money supply-demand model and Laffer curve, a synthetic macro-economic model is suggested for integrating the three rates. On policy implements, while tax rate regulates wealth redistribution for social equality, interest rate represents national policy for money supply and exchange rate characterizes international finance for national benefits. The synthetic model reveals that there are only limited policy tools for dealing with economic issues because the three rates are correlated each other, leading to restricted economic effects. As both interest and exchange rates are related to inflation, a possible extended model with including inflation rate is also introduced. More widely, the social economic issues of the three ratios are discussed in the view of political economics.
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| Publisher |
Academy of Business & Scientific Research
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| Date |
2015-10-09
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://absronline.org/journals/index.php/eajef/article/view/554
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| Source |
Euro-Asian Journal of Economics and Finance; Vol 3 No 4 (2015): October; 217-226
2310-4929 2310-0184 |
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| Language |
eng
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| Relation |
http://absronline.org/journals/index.php/eajef/article/view/554/575
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| Rights |
Copyright (c) 2015 Euro-Asian Journal of Economics and Finance
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