A Numerical Example Illustrating Globalization: Focus should be on Supply for the Peaks

Posted on October 3, 2020Categories EconomicsTags , , , , , ,   Leave a comment on A Numerical Example Illustrating Globalization: Focus should be on Supply for the Peaks

We are talking about globalisation and the recent manufacturing and construction slowdown. We present a novel globalisation model consisting of two countries, X and Y, each with domestic and foreign open-market systems. In each nation, we compare two pricing policies: short-run marginal cost, SRMC, versus fixed prices, P, over the business cycle. We are presenting a proposition and proof. With graphs for each country, we give a detailed numerical example. The key consequence is that P increases the volatility of … Continue reading “A Numerical Example Illustrating Globalization: Focus should be on Supply for the Peaks”