《重访开放经济》PPT课件

TheOpenEconomyRevisited:theMundell-FlemingModelandtheExchange-RateRegime,12,Inthischapter,youwilllearn,theMundell-Flemingmodel(IS-LMforthesmallopeneconomy)causesandeffectsofinterestratedifferentialsargumentsforfixedvs.floatingexchangerateshowtoderivetheaggregatedemandcurveforasmallopeneconomy,12.1TheMundell-Flemingmodel,Keyassumption:Smallopeneconomywithperfectcapitalmobility.r=r*GoodsmarketequilibriumtheIS*curve:,wheree=nominalexchangerate=foreigncurrencyperunitdomesticcurrency,TheIS*curve:Goodsmarketeqm,TheIS*curveisdrawnforagivenvalueofr*.Intuitionfortheslope:,FromKeynesianCrosstoISCurve,TheLM*curve:Moneymarketeqm,TheLM*curveisdrawnforagivenvalueofr*.isverticalbecause:givenr*,thereisonlyonevalueofYthatequatesmoneydemandwithsupply,regardlessofe.,TheLMCurve,EquilibriumintheMundell-Flemingmodel,equilibriumexchangerate,equilibriumlevelofincome,FloatingOthersintheU.S.wantedtariffsonChinesegoods.,CASESTUDY:TheChineseCurrencyControversy,IfChinaletstheyuanfloat,itmayindeedappreciate.However,ifChinaalsoallowsgreatercapitalmobility,thenChinesecitizensmaystartmovingtheirsavingsabroad.Suchcapitaloutflowscouldcausetheyuantodepreciateratherthanappreciate.,Mundell-FlemingandtheADcurve,SofarinM-Fmodel,Phasbeenfixed.Next:toderivetheADcurve,considertheimpactofachangeinPintheM-Fmodel.WenowwritetheM-Fequationsas:,(Earlierinthischapter,Pwasfixed,sowecouldwriteNXasafunctionofeinsteadof.),Y1,Y2,DerivingtheADcurve,AD,Y2,Y1,WhyADcurvehasnegativeslope:,P,LMshiftsleft,NX,Y,(M/P),Fromtheshortruntothelongrun,thenthereisdownwardpressureonprices.,Overtime,Pwillmovedown,causing(M/P)NXY,Large:Betweensmallandclosed,ManycountriesincludingtheU.S.areneitherclosednorsmallopeneconomies.Alargeopeneconomyisbetweenthepolarcasesofclosed&smallopen.Consideramonetaryexpansion:Likeinaclosedeconomy,M0rI(thoughnotasmuch)Likeinasmallopeneconomy,M0NX(thoughnotasmuch),ChapterSummary,1.Mundell-FlemingmodeltheIS-LMmodelforasmallopeneconomy.takesPasgiven.canshowhowpoliciesandshocksaffectincomeandtheexchangerate.2.Fiscalpolicyaffectsincomeunderfixedexchangerates,butnotunderfloatingexchangerates.,CHAPTER12TheOpenEconomyRevisited,slide49,ChapterSummary,3.Monetarypolicyaffectsincomeunderfloatingexchangerates.underfixedexchangerates,monetarypolicyisnotavailabletoaffectoutput.4.Interestratedifferentialsexistifinvestorsrequireariskpremiumtoholdacountrysassets.Anincreaseinthisriskpremiumraisesdomesticinterestratesandcausesthecountrysexchangeratetodepreciate.,CHAPTER12TheOpenEconomyRevisited,slide50,ChapterSummary,5.Fixedvs.floatingexchangeratesUnderfloatingrates,monetarypolicyisavailableforcanpurposesotherthanmaintainin