INTRODUCTION
The Balance of Payments
Natianal Accounts in Open Economies
The Exchange Rate
Monetary Policy in Open Economies
THE BALANCE OF PAYMENT and THE CURRENT ACCOUNT
The Intertemporal Approach to Current Account
The Two Periods Model
The Twin Deficits
The Overlapping Generation Model
EXCHANGE RATES and NON-ARBITRAGE EQUATIONS
Exchange Rates and Prices
Exchange Rates and Interest Rates
EXCHANGE RATES and TRADE BALANCES
The elasticity Approach
The Absorption Approach
Pass-through and Pricing to Market
MODELS of EXCHANGE RATE DETERMINATION
The Monetary Model
The Model with “Bubbles”
The Dornbush Model
The Portfolio Approach
Fixed Echange Rates and Monetary Policy
Fixed Exchange Rates and Inflation Rate
Fixed Exchange rates and Credibility
OPEN ECONOMY MACROECONOMICS
The Mundell-Fleming Model
The Poole Model
Public Deficits and Exchange Rates Regimes
CURRENCY CRISES
First Generation Models
Second Generation Models
Third Generation Models
NEW OPEN MACROECONOMICS
Introduction
The Redux Model
Extensions of Redux
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