巴罗 宏观经济学：现代观点 第18章.pptVIP

Macroeconomics Chapter 18 Different Currencies and Exchange Rates Each country issues and uses its own currency, instead of using a common currency. To keep things simple, pretend that there are only two countries. Think of the home country as the United States and the foreign country as China. The China nominal quantity of money, Mf, is measured in RMB. The U.S. nominal quantity of money, M, is in Dollars. Different Currencies and Exchange Rates Exchange market, on which participants trade the currency of one country for that of another. the nominal exchange rate is the number of RMBs r