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Original Articles

An explanation of the slowdown in US economic growth

Pages 91-94 | Received 11 Nov 1994, Published online: 02 Nov 2006
 

Abstract

This paper provides a Keynesian account of the slowdown in the United States economic growth as suggested by the growth model of Thirlwall. According to Thirlwall's model, economic growth is determined by the dynamic Harrod foreign trade multiplier. This multiplier relation indicates that the fall in the rate of economic growth has been brought about mainly by an increase in the income elasticity of demand for imports

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