1. 11 THE MACROECONOMICS OF OPEN ECONOMIES

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

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

4. Figure 2 US National Saving, Domestic Investment, and Net Foreign Investment Percent of GDP 20 18 16 14 12 10 19601965199519901985198019751970 (a) National Saving and Domestic Investment (as a percentage of GDP) 2000 Domestic investment National saving Copyright © 2004 South-Western

5. Figure 2 US National Saving, Domestic Investment, and Net Foreign Investment Percent of GDP 4 –4 –3 –2 –1 0 1 2 3 Net capital outflow (b) Net Capital Outflow (as a percentage of GDP) 196019651995199019851980197519702000 Copyright © 2004 South-Western

6. Figure 3 Money, Prices, and the Nominal Exchange Rate During the German Hyperinflation 10,000,000,000 1,000,000,000,000,000 100,000 1.00001.0000000001 1921192219231924 Exchange rate Money supply Price level 1925 Indexes (Jan. 1921 = 100) Copyright © 2004 South-Western