Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

Slides:

Advertisements

Similar presentations

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

Advertisements

Module Growth Policy: Why Economic Growth Rates Differ KRUGMAN'S MACROECONOMICS for AP* 39 Margaret Ray and David Anderson.

Interpreting Price Elasticity of Demand

Module Supply and Demand: Introduction and Demand

Module Equilibrium in the Aggregate Demand- Aggregate Supply Model

Macroeconomics Third Edition Chapter 7 GDP and the CPI: Tracking the Macroeconomy Copyright © 2013 by Worth Publishers Paul Krugman and Robin Wells.

The Loanable Funds Market

Module Supply and Demand: Changes in Equilibrium

1. What is the role of the foreign exchange market and the exchange rate? 2. What is the importance of real exchange rates and their role in the current.

Consumer and Producer Surplus

Consumer and Producer Surplus, Tax Incidence and Deadweight Loss

Module The Production Possibilities Curve Model

Module Fiscal Policy and the Multiplier KRUGMAN'S MACROECONOMICS for AP* 21 Margaret Ray and David Anderson.

Module Aggregate Supply: Introduction and Determinants KRUGMAN'S MACROECONOMICS for AP* 18 Margaret Ray and David Anderson.

Balance of Accounts and Foreign Exchange Markets

Module Putting it All Together

The Role of Exchange Rate Chapter  Currencies are traded in the foreign exchange market.  The prices at which currencies trade are known as exchange.

Module 42 May  Foreign exchange market – where currencies are traded  Exchange rates – the prices at which currencies trade.

Capital Flows and the Balance of Payments

Copyright © 2004 South-Western Mods The Open Economy: FOREX Models, Graphs, and Practice.

Module Exchange Rate Policy KRUGMAN'S MACROECONOMICS for AP* 43 Margaret Ray and David Anderson.

Defining Profit Lesson 4.52, Understanding Profit (52) Profit = Total Revenue – Total Costs Explicit vs Implicit Costs – Explicit costs require.

Aggregate Supply Module 18.

Module Supply and Demand: Supply and Equilibrium

Module 29 The Market for Loanable Funds KRUGMAN'S

Module Exchange Rate Policy KRUGMAN'S MACROECONOMICS for AP* 43 Margaret Ray and David Anderson.

Module The Meaning and Calculation of Unemployment KRUGMAN'S MACROECONOMICS for AP* 12 Margaret Ray and David Anderson.

Module Equilibrium in the Aggregate Demand- Aggregate Supply Model

Module 29 The Market for Loanable Funds KRUGMAN'S

Chapter 19. Open Economy Macroeconomics Link to syllabus.

Module Interpreting Real Gross Domestic Product KRUGMAN'S MACROECONOMICS for AP* 11 Margaret Ray and David Anderson.

Module The Circular Flow and Gross Domestic Product KRUGMAN'S MACROECONOMICS for AP* 10 Margaret Ray and David Anderson.

ECO Global Macroeconomics TAGGERT J. BROOKS.

Module Economic Growth in Macroeconomic Models KRUGMAN'S MACROECONOMICS for AP* 40 Margaret Ray and David Anderson.

Pump Primer : Why does the Demand for dollars slope downward? Why does the Supply of Dollars slope upward? 42.

Module Economic Policy and the Aggregate Demand- Aggregate Supply Model odel KRUGMAN'S MACROECONOMICS for AP* 20 Margaret Ray and David Anderson.

1 of 49 chapter: 42 >> Krugman/Wells ©2009  Worth Publishers Foreign Exchange Market.

KRUGMAN'S MICROECONOMICS for AP* The Market for Labor Margaret Ray and David Anderson Micro: Econ: Module.

Module Inflation and Unemployment: The Phillips Curve

KRUGMAN'S MICROECONOMICS for AP* Utility Maximization Margaret Ray and David Anderson Micro: Econ: Module.

Module The Measurement and Calculation of Inflation KRUGMAN'S MACROECONOMICS for AP* 15 Margaret Ray and David Anderson.

Module Supply and Demand: Introduction and Demand KRUGMAN'S MACROECONOMICS for AP* 5 Margaret Ray and David Anderson.

KRUGMAN'S MICROECONOMICS for AP* Introduction to Monopoly Margaret Ray and David Anderson Micro: Econ: Module.

Module Monetary Policy and the Interest Rate

McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 19: What Determines Exchange Rates?

Module The Definition and Measurement of Money KRUGMAN'S MACROECONOMICS for AP* 23 Margaret Ray and David Anderson.

Module Comparative Advantage and Trade

Consumer and Producer Surplus Lesson Consumer Surplus and the Demand Curve Willingness to Pay – The demand curve is based on the individual choices.

Interpreting Price Elasticity of Demand Unit 3.47.

Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson.

AP Economics Mr. Bernstein Module 42: The Foreign Exchange Market April 15, 2015.

Module Capital Flows and the Balance of Payments KRUGMAN'S MACROECONOMICS for AP* 41 Margaret Ray and David Anderson.

Module Introduction to Macroeconomics KRUGMAN'S MACROECONOMICS for AP* 2 Margaret Ray and David Anderson.

Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson.

Module Productivity and Growth KRUGMAN'S MACROECONOMICS for AP* 38 Margaret Ray and David Anderson.

Module Money, Output, and Prices in the Long Run KRUGMAN'S MACROECONOMICS for AP* 32 Margaret Ray and David Anderson.

KRUGMAN'S MACROECONOMICS for AP* Module The Study of Economics 1 Margaret Ray and David Anderson NEW PICTURE TO COME.

Module The Meaning and Calculation of Unemployment

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

KRUGMAN'S MACROECONOMICS for AP* 29 Margaret Ray and David Anderson Module The Market for Loanable Funds.

Module The Foreign Exchange Market

Chapter 8 Slide 1 Figure 8-1 page 194

Figure 5-1 Imports and Exports as a Percentage of Output: 2010

Capital Flows and the Balance of Payments and The Foreign Exchange Market Lesson 39 Sections 41, 42.

Глава 13 Девизен пазар.

Please read the following License Agreement before proceeding.

Module The Foreign Exchange Market

Module The Foreign Exchange Market

Module 29 The Market for Loanable Funds KRUGMAN'S

TABLE 15.1 Exchange Rates. TABLE 15.1 Exchange Rates.

Presentation transcript:

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson

What you will learn in this Module : The role of the foreign exchange market and the exchange rate The importance of real exchange rates and their role in the current account

Understanding Exchange Rates Understanding Exchange Rates Foreign Exchange Market Exchange Rates Appreciate Depreciate US $JP ¥€ $ ¥ €

The Equilibrium Exchange Rate The Equilibrium Exchange Rate FOREX follows laws of supply & demand Equilibrium Exchange Rate

Inflation and Real Exchange Rates Inflation and Real Exchange Rates Real Exchange Rates Nominal Exchange Rates Real Exchange Rate and the Current Account Current Account - The difference between a nation's total exports of goods, services and transfers, and its total imports of them.

Purchasing Power Parity Purchasing Power Parity Purchasing Power Parity (PPP) Big Mac Index Nominal Exchange Rates and PPP

Table 42.1 Exchange Rates, April 30, 2010, 9:40 A.M. Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Figure 42.1 The Foreign Exchange Market Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Table 42.2 Equilibrium in the Foreign Exchange Market: A Hypothetical Example Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Figure 42.2 An Increase in the Demand for U.S. Dollars Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Table 42.3 Effects of Increased Capital Inflows Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Figure 42.3 Real versus Nominal Exchange Rates, 1990–2009 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Figure 42.4 Purchasing Power Parity versus the Nominal Exchange Rate, 1990–2008 Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

Unnumbered Figure 42.1 Low-Cost America Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers