Chapter 5 - Witte Open Economy –Perfect Capital Mobility –NX = NCO
Chapter 5 - Witte NX = NCO, 1 Barrel of Oil
Chapter 5 - Witte Small Open Economy –Canada, New Zealand, Hong Kong, Singapore, Ireland
Chapter 5 - Witte r, NX = NCO graphically in a Small Open Economy
Chapter 5 - Witte Poor Nations may not be “Open”
Chapter 5 - Witte Exchange Rates Spot vs. Forward Nominal vs. Real RER =
Chapter 5 - Witte RER for all goods Graphically PPP and LOOP
Chapter 5 Appendix- Witte Large Open Economy –Set own interest rate NCO = NCO(r) Graphically –Information sets + exchange rate risk = home bias
Chapter 5 Appendix- Witte S = I + NCO
Chapter 5 Appendix- Witte Graphically (to be revisited with IS-LM, Ch. 12 App)