1. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 14 Stabilization Policy in the Closed and Open Economy

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-2 Figure 14-1 A Flowchart Showing the Relationship Between Policy Instruments, Policy Targets, and Economic Welfare

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-3 Figure 14-2 The Percent Change in Real GDP Following a 1 Percentage Point Change in the Treasury Bill Rate, Three Intervals, 1961–2004

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-4 Figure 14-3 The Log Output Ratio and the Moving Average of its Absolute Value, 1960–2004 (1 of 2)

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-5 Figure 14-3 The Log Output Ratio and the Moving Average of its Absolute Value, 1960–2004 (2 of 2)

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-6 Figure 14-3 The Log Output Ratio and the Moving Average of its Absolute Value, 1960–2004

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-7 Figure 14-4 The Federal Funds Interest Rate and the Log Output Ratio, 1980–2005

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-8 Figure 14-5 The Actual Federal Funds Rate and Interest Rates Calculated by Two Versions of the Taylor Rule, 1980–2004

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-9 Table 14-1 Assessing Alternative Policy Rules (1 of 2)

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-10 Table 14-1 Assessing Alternative Policy Rules (2 of 2)

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-11 Table 14-1 Assessing Alternative Policy Rules

12. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 14-12 International Perspective The Debate About the Euro