Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a...

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Economic Policy Economic Policy Floating Exchange Rates

Transcript of Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a...

Page 1: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Economic PolicyEconomic Policy

Floating Exchange Rates

Page 2: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 2

The Effects of a Currency Depreciation on the IS and BP Schedules

Page 3: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 3

The Effects of an Increase in the Money Stock with Floating Exchange Rates

Page 4: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 4

The Effects of an Increase in Government Spending with a Floating Exchange Rate

Page 5: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 5

Monetary and Fiscal Policies with Perfect Capital Mobilityand Floating Exchange Rates

Page 6: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 6

Real-Income Effects with Perfect Capital Mobility and Fixed Versus Flexible Exchange Rates

Exchange-Rate Setting

Monetary Policy Effect

Fiscal Policy Effect

Fixed Exchange Rate

Minimum Effect Maximum Effect

Flexible Exchange Rate

Maximum Effect Minimum Effect

Page 7: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 7

Cross-Country Effects In Two-Country Model With Perfect Capital Mobility

Exchange-Rate Setting

Monetary Policy Effect

Fiscal Policy Effect

Fixed Exchange Rate

Locomotive Effect

Beggar-Thy-Neighbor Effect

Flexible Exchange Rate

Beggar-Thy-Neighbor Effect

Locomotive Effect

Page 8: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 8

Monetary and Fiscal Policies with Perfect Capital Mobilityand Fixed Exchange Rates

Page 9: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 9

The Effects of an Increase in Government Spending with a Floating Exchange Rate

Page 10: Economic Policy Floating Exchange Rates. Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules.

Daniels and VanHoose

Econoic Policy 10

The Effect of a Fall in the Demand for Real Money Balances on the Position of the LM Schedule