Chapter 19 open economy macroeconomics
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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.

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Egypt s balance of payments 1991 1998
Egypt’s Balance of Payments, 1991-1998

Source: WTO Trade Policy Review, Egypt, 1999



Earlier edition exchange rates 2008
Earlier edition. Exchange rates, 2008

Link to x-rate.com



The sliding euro

P. 497

Bade/Parkin

EYE ON THE GLOBAL ECONOMY

The Sliding Euro

Back to list


The dollar and the yen since 1980

P. 485

Bade/Parkin

The Dollar and the Yen Since 1980

Back to list


The foreign exchange market fig 19 5 p 562
The Foreign Exchange Market. Fig. 19-5, p. 562.

←Depreciation of $ Appreciation of $→

The market for US Dollars in Europe, for which the price is expressed as €/$.


The foreign exchange market fig 19 5 p 5621
The Foreign Exchange Market. Fig. 19-5, p. 562.

←Depreciation of $ Appreciation of $→

(US imports)

(US exports)

The market for US Dollars in Europe, for which the price is expressed as €/$.


The foreign exchange market fig 19 5 p 5622
The Foreign Exchange Market. Fig. 19-5, p. 562.

←Depreciation of $ Appreciation of $→

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






Exchange rate intervention fig 19 10 p 570 can t do this in this course
Exchange Rate Intervention. Fig. 19-10, p. 570 19-7, p. 565Can’t do this in this course.

Balance of payments deficit: Balance of payments surplus

oversupply of domestic currency

in international markets.

S reflects Genovian imports,

D is Genovian exports, and

Exports – Imports < 0.




Monetary policy and the exchange rate fig 18 12 p 519
Monetary Policy and the Exchange Rate. Fig. 18-12, p. 519 19-7, p. 565

Note that the exchange rate is now Geno/$, in contrast to Fig. 18-5.



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