Thus, the movement of the exchange

Thus, the movement of the exchange rate depends on the interaction of the government expenditure
differential and the endogenous private consumption differential.
In a next step, we solve for the linearized difference between the home and foreign budget constraints (31) and (32). Substituting for the resulting differences between goods demands
and for the difference between the overall price levels, we obtain the following expression for
the exchange rate:

Hasil (Bahasa Indonesia) 1:

Dengan demikian, pergerakan nilai tukar tergantung pada interaksi pengeluaran pemerintahdiferensial dan diferensial endogen konsumsi pribadi.Pada langkah berikutnya, kita memecahkan linearized perbedaan antara kendala anggaran rumah dan luar negeri (31) dan (32). Menggantikan dihasilkan perbedaan antara barang-barangdan perbedaan antara tingkat harga secara keseluruhan, kami memperoleh ekspresi berikut untuknilai tukar: