Chapter

OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS 691

I he International Flows ol Goods and Capital 692

The Flow ol Goods: Exports. Imports, and Net

Exports 692 CASE STUDY The Increasing Openness of the U.S.

Economy 693 IN THE NEWS Breaking Up the Chain of Production 694

i lrw "I rinniKh:! Krv.'iirv.--; Vlmiliil Pulfi-.iiV <i"l?

I he Equality of Net Exports arid Net Capital

Outflow 697 •T-jvi.-i,; I.t. f-lnv.T.l.anil flr;ir Ivltn'tvihip !■■

in-- IrtrTiiliiT il I l-.'Vi':- v-;^ Summing Up 7*M>

CASE STUDY I« the U.S. Trade Defi«t » Nat-onal Problem? 700

Th# Prices for International Transactions: Real and Nominal Exchange Rates 703

Nominal Exchange Rates 703 FY I The Euro 704 Real Exchange Ra to* 704 IN THE NEWS Ho»* a Weak Do«ar BooiH Export» 706

\ I ir-.l 1 hrnry ill 1 tdlillgeiHale Hrlrrniinatinn-Purvlia-iing l'inurr Eldft_ICZ

; I.- ,-i.l;- -■' I , v_I'l.'h I .¡inn', iV.Vi - l'iiri"._ZliZ

! it if - :: ,i;n:i - -," !'i n |- i-iiii'.-! 'i;.i i " I' r:?'. 11 ri CASE STUDY The Nominal Exchange Rat« During «

Hyperinflation 709 Limitations of Purchasing-Power Parity 710 CASE STUDY The Hamburger Standard 711

Summary 712

Questions for Review 713 l'iifl?lt-niM and Vplmtimi:i 111

CHAPTER 3?

A MACROfTONnMr TMFORY OF THF OpFN ECONOMY 71S

Supply and Demand for I oanabte Funds and fm foreign-Currency fcxchange 716

The Market for Loanable Funds 716

The Market for Foreign-Currency Exchange 718

FYI Purchaiing Povicr Parity as a Special Case 720

Equilibrium in the Open Economy 721

Net Capital Outflow: The Link between the Two

Markets 721

Hont Eolkkaami Euan Mint an Qpta Etaaaia»_Z21

Pfffttif '24

Trade Polin- 728

PoliiKal Insiabiliiy and Capital Flight 730 CASE <>' J 3Y Capital Flcw/s from China 732

Conclusion 733

Smunuy_IH

Kt> tvn-.ti'ls 7?) Uufilivriii fiir Ryvicrt_

Problems .and Applications 735

"abie of contents kxtk n i *

Was this article helpful?

0 0
The Secrets Of Winning Business Grants

The Secrets Of Winning Business Grants

Why Some Grant Applications Almost Always Win A Double Take And Get Approved More Often! How To Write A Winning Grant Application In One Evening. Are you looking to secure extra money for your business venture?

Get My Free Ebook


Post a comment