In 2020 Marco Varonese Passarella, Giuseppe Fontana and I published a paper in the “Cambridge Journal of Economics” in which we developed a “new Marshall-Lerner condition” given a (more realistic) assumption of only partial exchange rate pass-through to import prices. We showed that the higher the pass-through, the slower is the adjustment of the economy towards the equilibrium of the current account. In other words, the speed of adjustment is a positive function of the strategic behaviour of the exporters, who attempt to retain their market share by keeping their foreign currency-denominated prices unchanged.
This paradox has now been listed among the eight “general Post-Keynesian macro-paradoxes” (The Flexibility Paradox III) in the new edition of Marc Lavoie’s textbook “Post-Keynesian Economics. New Foundations”. The new version of the Marshall-Lerner condition is covered in Chapter 7 (“Open-economy macroeconomics). Here is the the Table of Contents.