第5章开放的经济.ppt

* * PPP implies that the cost of a basket of goods (even a basket with just one good, like a Big Mac or a latte) should be the same across countries. e P = the foreign-currency cost of a basket of goods in the U.S., while P* the cost of a basket of foreign goods. PPP implies that the baskets cost the same in both countries: eP = P*, which implies that e = P*/P. * Revisiting our model, this implies that the NX curve should be horizontal at ? = 1. Intuition for the horizontal NX curve: Under PPP, different countries’ goods are perfect substitutes, and international arbitrage is