Slide 1Open-Economy Macroeconomics Basic Concepts (Chapter 18) Slide 2 Purpose of Ch 18 Develop the basic concepts macroeconomists use to study open economies (i.e., economies…

Review of the previous lecture Nominal interest rate equals real interest rate + inflation rate. Fisher effect: nominal interest rate moves one-for-one w/ expected inflation.…

Slide 1 Open Economy Macroeconomics The Final Frontier Slide 2 Closed Economy Macroeconomics Y = C + I + G (Goods Market) S = I + (G-T) (Asset Market) There is only one medium…

Slide 1 slide 0 CHAPTER 5 The Open Economy In Chapter 5, you will learn…  accounting identities for the open economy  the small open economy model  what makes…

Review of the previous lecture Nominal interest rate equals real interest rate + inflation rate. Fisher effect: nominal interest rate moves one-for-one w/ expected inflation.…

6. The Open Economy Ohio Wesleyan University Goran Skosples 6. The Open Economy National Income & Business Cycles ‹#› ‹#› 0 accounting identities for the open…