The Open Economy Nominal Exchange Rates

The Open Economy

Nominal Exchange Rates

Nominal Exchange Rates (continued)

Exchange Rate Systems

Exchange Rate Systems (continued)

Real Exchange Rate

Real Exchange Rate (continued)

Appreciation and Depreciation

Appreciation and Depreciation (continued)

Appreciation and Depreciation (continued)

Purchasing Power Parity

Purchasing Power Parity (continued)

Purchasing Power Parity (continued)

The Real Exchange Rate and Net Exports

How Exchange Rates are Determined

Demand for Dollars

Supply of Dollars

Effects of Changes in Output (Income)

Effects of Changes in Output (continued)

Effects of Changes in Real Interest Rate

Effects of Changes in Real Interest Rate (continued)

Returns on Domestic and Foreign Assets

Returns on Domestic and Foreign Assets (continued)

Returns on Domestic and Foreign Assets (continued)

Interest Rate Parity

Interest Rate Parity (continued)

Interest Rate Parity (continued)

Interest Rate Parity (continued)

The Transmission of Business Cycles

Macroeconomic Policy with Flexible Exchange Rates

A Fiscal Expansion and the Flexible Exchange Rate

A Monetary Expansion and the Flexible Exchange Rate

A Monetary Expansion (continued)

A Monetary Expansion (continued)

Fixing the Exchange Rate

Overvalued Exchange Rate

Overvalued Exchange Rate (continued)

A Speculative Run

How to Support an Overvalued Currency

Undervalued Exchange Rate

A Monetary Policy and the Fixed Exchange Rate

A Monetary Policy (continued)

A Fiscal Policy and the Fixed Exchange Rate

A Fiscal Policy (continued)

A Fiscal Policy (continued)

Fixed versus Flexible Exchange Rates

Open-Economy Trilemma

Fixed Exchange Rate System

Flexible Exchange Rates System

Currency Unions

The Self-Correcting Small Economy

The Self-Correcting Small Economy (continued)

The Self-Correcting Small Economy (continued)

End of Chapter