TAILIEUCHUNG - Lecture Macroeconomics: Lecture 13 - Prof. Dr.Qaisar Abbas

Lecture 13: Open economy - II. In this chapter you will learn the theory of liquidity preference as a short-run theory of the interest rate, analyze how monetary policy affects interest rates and aggregate demand, analyze how fiscal policy affects interest rates and aggregate demand, discuss the debate over whether policymakers should try to stabilize the economy. | Review of the previous lecture Net exports--the difference between exports and imports a country’s output (Y ) and its spending (C + I + G) Net capital outflow equals purchases of foreign assets minus foreign purchases of the country’s assets the difference between saving and investment Lecture 13 Instructor: Abbas Open economy - II Lecture Outline Exchange rate Four experiments Purchasing power parity Exchange rate e = nominal exchange rate, the relative price of domestic currency in terms of foreign currency (. Yen per Dollar) The nominal exchange rate The real exchange rate = real exchange rate, the relative price of domestic goods in terms of foreign goods (. Japanese Big Macs per . Big Mac) ε Exchange rate Understanding the units of ε ε Exchange rate ε in the real world & our model In the real world: We can think of ε as the relative price of a basket of domestic goods in terms of a basket of foreign goods In our macro model: There’s just one .

• Kinh tế học
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory