The Marshall-Lerner Condition

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Uploaded by on 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 current account balance. The MLC is an application of the total revenue test of price elasticity of demand, and applies to the sections of the Econ course on Balance of Payments and Exchange Rates.

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  • Very useful. Using in class to reinforce the theory.

  • Great job!

  • This is PERFECT! I needed just this to be able to write my economics commentary, which is actually about the Swiss Franc target rate. Thanks! :D

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