Transcript Document

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)
Earlier edition. Exchange rates, 2008
Link to x-rate.com
Newspaper Presentation
EYE ON THE GLOBAL ECONOMY
P. 497
Bade/Parkin
The Sliding Euro
Back to list
P. 485
Bade/Parkin
The Dollar and the Yen Since 1980
Back to list
←Depreciation of $
Appreciation of $→
The Foreign Exchange Market. Fig. 19-5, p. 562.
The market for US Dollars in Europe, for which
the price is expressed as €/$.
←Depreciation of $
Appreciation of $→
The Foreign Exchange Market. Fig. 19-5, p. 562.
(US imports)
(US exports)
The market for US Dollars in Europe, for which
the price is expressed as €/$.
←Depreciation of $
Appreciation of $→
The Foreign Exchange Market. Fig. 19-5, p. 562.
US imports &
capital flows,
US → Europe
US exports &
capital flows,
Europe → US
The market for US Dollars in Europe, for which
the price is expressed as €/$.
Increase in Demand for US Dollars in Europe,
caused by greater capital flows from Europe → US.
Fig 19-6, p. 563
Political Impact on Xrates
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. 570
Can’t do this in this course.
Balance of payments deficit:
oversupply of domestic currency
in international markets.
S reflects Genovian imports,
D is Genovian exports, and
Exports – Imports < 0.
Balance of payments surplus
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