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

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Presentation transcript:

Economic Policy Floating Exchange Rates

Daniels and VanHooseEconoic Policy2 The Effects of a Currency Depreciation on the IS and BP Schedules

Daniels and VanHooseEconoic Policy3 The Effects of an Increase in the Money Stock with Floating Exchange Rates

Daniels and VanHooseEconoic Policy4 The Effects of an Increase in Government Spending with a Floating Exchange Rate

Daniels and VanHooseEconoic Policy5 Monetary and Fiscal Policies with Perfect Capital Mobility and Floating Exchange Rates

Daniels and VanHooseEconoic Policy6 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 EffectMaximum Effect Flexible Exchange Rate Maximum EffectMinimum Effect

Daniels and VanHooseEconoic Policy7 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

Daniels and VanHooseEconoic Policy8 Monetary and Fiscal Policies with Perfect Capital Mobility and Fixed Exchange Rates

Daniels and VanHooseEconoic Policy9 The Effects of an Increase in Government Spending with a Floating Exchange Rate

Daniels and VanHooseEconoic Policy10 The Effect of a Fall in the Demand for Real Money Balances on the Position of the LM Schedule