宏观经济学HUBBARD_MACRO_SG_17的.pdfVIP

Chapter17(29)

MacroeconomicsinanOpen

Economy

ChapterSummary

Nearlyalleconomiesareopeneconomiesthattradewithandinvestinothereconomies.Aclosed

economyhasnointeractionsintradeorfinancewithothereconomies.Thebalanceofpaymentsisthe

recordofacountry’stradewithothercountriesingoods,services,andassets.Thenominalexchange

rateisthevalueofonecountry’scurrencyintermsofanothercountry’scurrency.Theexchangerateis

determinedintheforeignexchangemarketbythedemandforandsupplyofacountry’scurrency.

Currencyappreciationoccurswhenacurrency’smarketvalueincreasesrelativetoanothercurrency.

Currencydepreciationoccurswhenacurrency’smarketvaluedecreasesrelativetoanothercurrency.

Whenthegovernmentrunsabudgetdeficit,nationalsavingwilldeclineunlessprivatesavingincreases

bythefullamountofthebudgetdeficit,whichisunlikely.Asthesavingandinvestmentequation(S=I+

NFI)shows,theresultofadeclineinnationalsavingmustbeadeclineineitherdomesticinvestmentor

netforeigninvestment.

WhentheFederalReserveengagesinanexpansionarymonetarypolicy,itbuysgovernmentbondsto

lowerinterestratesandincreaseaggregatedemand.WhentheFedwantstoslowtherateofeconomic

growthtoreduceinflation,itengagesinacontractionarymonetarypolicy.Withacontractionarypolicy,

theFedsellsgovernmentbondstoincreaseinterestratesandreduceaggregatedemand.Monetarypolicy

hasagreaterimpactonaggregatedemandinanopeneconomythaninaclosedeconomy.Toengageinan

expansionaryfiscalpolicy,thegovernmentincreasesgovernmentspendingorcutstaxes.An

expansionaryfiscalpolicycanleadtohigherinterestrates.Acontractionaryfiscalpolicywillreducethe

budgetdef