Presentation is loading. Please wait.

Presentation is loading. Please wait.

Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

Published byAdam Bryan Modified over 6 years ago

Similar presentations

Presentation on theme: "Copyright© 2008 South-Western/Cengage Learning. All rights reserved."— Presentation transcript:

1 Copyright© 2008 South-Western/Cengage Learning. All rights reserved.
CHAPTER 19 Long-Term Exchange Rate Movements and Comparative Advantage Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

2 Exhibit 19-1 The Law of One Price
Copyright© 2008 South-Western/Cengage Learning. All rights reserved. South-Western/Cengage Learning. All rights reserved

3 Exhibit 19-2 The Law of One Price
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

4 Copyright© 2008 South-Western/Cengage Learning. All rights reserved.
Exhibit 19-3 Absolute PPP Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

5 Exhibit 19-4 Relative Purchasing Power Parity
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

6 Exhibit 19-5 Major Take-Away Point from Relative PPP
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

7 Exhibit 19-6 Comparing PPP with an Error Band to Actual Exchange Rates
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

8 Exhibit 19-7 Why PPP-Predicted Rates May Be Inaccurate
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

9 Exhibit 19-8 Linking PPP to QTM
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

10 Exhibit 19-9 Output per Worker per Day in Inland and Outland
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

11 Exhibit 19-10 Opportunity Costs for Inland and Outland
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

12 Copyright© 2008 South-Western/Cengage Learning. All rights reserved.
Exhibit Domestic Opportunity Costs and Range of Possible Trading Ratios Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

13 Exhibit 19-12 Cost of High-Tech Products and Clothing
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

14 Exhibit 19-13 Cost of High-Tech Products and Clothing
Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

15 Copyright© 2008 South-Western/Cengage Learning. All rights reserved.
Exhibit Net Exports-to-GDP Ratio versus Unemployment Rate, 2004 and 2005 Source: See Appendix 19-1 for the list of countries and values. Copyright© 2008 South-Western/Cengage Learning. All rights reserved.

Download ppt "Copyright© 2008 South-Western/Cengage Learning. All rights reserved."

Similar presentations

at the end of the lesson you should be able to: identify the 3 conditions of identify the 3 conditions of trade trade identify the limitations of identify.

at the end of the lesson you should be able to: identify the 3 conditions of identify the 3 conditions of trade trade identify the limitations of identify.
Inflation Inflation versus price level Inflation versus price level Determinants of Irish inflation: Determinants of Irish inflation: 1. Euro price of.

Inflation Inflation versus price level Inflation versus price level Determinants of Irish inflation: Determinants of Irish inflation: 1. Euro price of.
McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 8: Analysis of a Tariff.

McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 8: Analysis of a Tariff.
Why trade? Buy/import resources one is lacking, sell/export those one has in abundance Buy/import goods which are relatively inefficient to produce, sell/export.

Why trade? Buy/import resources one is lacking, sell/export those one has in abundance Buy/import goods which are relatively inefficient to produce, sell/export.
Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 1 What Is Macroeconomics?

Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 1 What Is Macroeconomics?
Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley THE FACTS TO BE EXPLAINED Chapter 1.

Copyright © 2009 Pearson Education, Inc. Publishing as Pearson Addison-Wesley THE FACTS TO BE EXPLAINED Chapter 1.
Purchasing Power Parity (PPP) The PPP Hypothesis states that the exchange rate between two countries’ currencies equals the ratio of the currencies’ purchasing.

Purchasing Power Parity (PPP) The PPP Hypothesis states that the exchange rate between two countries’ currencies equals the ratio of the currencies’ purchasing.
Chapter 14 Prices and Exchange Rates: Purchasing Power Parity.

Chapter 14 Prices and Exchange Rates: Purchasing Power Parity.
Copyright © 2012 Pearson Addison-Wesley. All rights reserved. 3-1 Do Wages Reflect Productivity? Do relative wages reflect relative productivities of the.

Copyright © 2012 Pearson Addison-Wesley. All rights reserved. 3-1 Do Wages Reflect Productivity? Do relative wages reflect relative productivities of the.
Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-1 Chapter 15 Price Levels and the Exchange Rate in the Long Run.

Copyright © 2006 Pearson Addison-Wesley. All rights reserved Chapter 15 Price Levels and the Exchange Rate in the Long Run.
Copyright © 2008 Pearson Addison-Wesley. All rights reserved. Chapter 33 The Gains from International Trade.

Copyright © 2008 Pearson Addison-Wesley. All rights reserved. Chapter 33 The Gains from International Trade.
Specialization Shift resources to export industry Achieve higher overall output and income Absolute advantage –Higher output per worker for a good Comparative.

Specialization Shift resources to export industry Achieve higher overall output and income Absolute advantage –Higher output per worker for a good Comparative.
Dale R. DeBoer University of Colorado, Colorado Springs 12 - 1 An Introduction to International Economics Chapter 12: Exchange Rate Determination Dominick.

Dale R. DeBoer University of Colorado, Colorado Springs An Introduction to International Economics Chapter 12: Exchange Rate Determination Dominick.
PPPs A Note on Projecting Benchmark Result Art Ridgeway Based on a paper by John Baldwin and Ryan Macdonald.

PPPs A Note on Projecting Benchmark Result Art Ridgeway Based on a paper by John Baldwin and Ryan Macdonald.
McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 19: What Determines Exchange Rates?

McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 19: What Determines Exchange Rates?
Class Slides for EC 204 Spring 2006 To Accompany Chapter 5.

Class Slides for EC 204 Spring 2006 To Accompany Chapter 5.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
International Trade. The Gains from Trade n The law of comparative advantage < specialisation as the basis for trade < absolute advantage < comparative.

International Trade. The Gains from Trade n The law of comparative advantage < specialisation as the basis for trade < absolute advantage < comparative.
Quick Review: A Simple Model of Long Run Exchange Rates Roberto Chang February 2013.

Quick Review: A Simple Model of Long Run Exchange Rates Roberto Chang February 2013.
C H A P T E R 8 Relationships among Inflation, Interest Rates, and Exchange Rates COPYRIGHT © 2008 South-Western/Cengage Learning.

C H A P T E R 8 Relationships among Inflation, Interest Rates, and Exchange Rates COPYRIGHT © 2008 South-Western/Cengage Learning.

Similar presentations

Ads by Google