Chapter 19. Open Economy Macroeconomics
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Chapter 19. Open Economy Macroeconomics Link to syllabus
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Chapter 19. Open Economy Macroeconomics. Link to syllabus. The US Balance of Payments, 2010. Table 19-2, p. 551. Big Surpluses. P. 555. Current Account Deficits. Earlier edition. p. 499. Egypt’s Balance of Payments, 1991-1998. Source: WTO Trade Policy Review, Egypt, 1999. - PowerPoint PPT Presentation
Transcript of Chapter 19. Open Economy Macroeconomics
Chapter 19. Open Economy Macroeconomics
Link to syllabus
The US Balance of Payments, 2010. Table 19-2, p. 551
Big Surpluses. P. 555.
Current Account Deficits. Earlier edition. p. 499
Egypt’s Balance of Payments, 1991-1998
Source: WTO Trade Policy Review, Egypt, 1999
Exchange Rates, Sept. 24, 2011 (Table 19-3, p. 561)
Newspaper Presentation
EYE ON THE GLOBAL ECONOMY
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P. 497Bade/Parkin
The Sliding Euro
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P. 485Bade/Parkin
The Dollar and the Yen Since 1980
The Foreign Exchange Market. Fig. 19-5, p. 562.
The market for US Dollars in Europe, for which the price is expressed as €/$.
←D
epre
ciat
ion
of $
A
ppre
ciat
ion
of $
→
The Foreign Exchange Market. Fig. 19-5, p. 562.
The market for US Dollars in Europe, for which the price is expressed as €/$.
←D
epre
ciat
ion
of $
A
ppre
ciat
ion
of $
→
(US imports)
(US exports)
The Foreign Exchange Market. Fig. 19-5, p. 562.
The market for US Dollars in Europe, for which the price is expressed as €/$.
←D
epre
ciat
ion
of $
A
ppre
ciat
ion
of $
→
US imports &capital flows,US → Europe
US exports &capital flows,Europe → US
Increase in Demand for US Dollars in Europe, caused by greater capital flows from Europe → US.
Fig 19-6, p. 563
Political Impact on X-rates
Real vs. Nominal Exchange Rates Peso/US$ 1993-2011. Figure 19-7, p. 565
U.S. Net Exports. Fig. 19-9, p. 568
US Net Exports, 1947-2008. Fig. 18-9, p. 512
Exchange Rate Intervention. Fig. 19-10, p. 570Can’t do this in this course.
Balance of payments deficit: Balance of payments surplusoversupply of domestic currencyin international markets.S reflects Genovian imports,D is Genovian exports, andExports – Imports < 0.
Fig. 19-11 p. 572 The Road to the Euro
International Capital Flows. Fig. 18-4, p. 501
Monetary Policy and the Exchange Rate. Fig. 18-12, p. 519
Note that the exchange rate is now Geno/$, in contrast to Fig. 18-5.
Purchasing Power Parity, Canada/US. Fig. 19-8, p. 567
