11 THE MACROECONOMICS OF OPEN ECONOMIES

Copyright © 2006 Thomson Learning 31 Open-Economy Macroeconomics: Basic Concepts

Figure 1 The Increasing Openness of the World Economy Copyright © 2004 South-Western

Figure 2 US National Saving, Domestic Investment, and Net Foreign Investment Percent of GDP (a) National Saving and Domestic Investment (as a percentage of GDP) 2000 Domestic investment National saving Copyright © 2004 South-Western

Figure 2 US National Saving, Domestic Investment, and Net Foreign Investment Percent of GDP 4 –4 –3 –2 – Net capital outflow (b) Net Capital Outflow (as a percentage of GDP) Copyright © 2004 South-Western

Figure 3 Money, Prices, and the Nominal Exchange Rate During the German Hyperinflation 10,000,000,000 1,000,000,000,000, , Exchange rate Money supply Price level 1925 Indexes (Jan = 100) Copyright © 2004 South-Western