The Open Economy

 

  1. Expanding the Closed Economy Model
    1. Capital Flows
    2. Trade
  2. Determination of Net Exports
    1. Function of Real Exchange Rate
    2. Determined by Saving and Investment
  3. Determination of Real Exchange Rate
  4. Using the Model
    1. Fiscal Policy at Home
    2. Fiscal Policy Abroad
  5. Purchasing Power Parity