What is the Marshall Lerner Condition?

  • Google+ icon
  • LinkedIn icon
  • 861 views

MLC states that a devaluation (in the LR) will only have a positive effect on the current account if the sum of the elasticities of demand for exports and imports is negative and numerically greater than 1 (elastic).

ZoeTemiloluwa C. GCSE Religious Studies tutor, GCSE Economics tutor, ...

About the author

is an online GCSE Economics tutor with MyTutor studying at Warwick University

Still stuck? Get one-to-one help from a personally interviewed subject specialist.

95% of our customers rate us

Browse tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok