Economic Policy

1
Economic Policy

• Floating Exchange Rates

2
The Effects of a Currency Depreciation on the IS
and BP Schedules
3
The Effects of an Increase in the Money Stock
with Floating Exchange Rates
4
The Effects of an Increase in Government
Spending with a Floating Exchange Rate
5
Monetary and Fiscal Policies with Perfect Capital
Mobilityand Floating Exchange Rates
6
Real-Income Effects with Perfect Capital Mobility
and Fixed Versus Flexible Exchange Rates
Exchange-Rate Setting Monetary Policy Effect Fiscal Policy Effect
Fixed Exchange Rate Minimum Effect Maximum Effect
Flexible Exchange Rate Maximum Effect Minimum Effect
7
Cross-Country Effects In Two-Country Model With
Perfect Capital Mobility
Exchange-Rate Setting Monetary Policy Effect Fiscal Policy Effect
Fixed Exchange Rate Locomotive Effect Beggar-Thy-Neighbor Effect
Flexible Exchange Rate Beggar-Thy-Neighbor Effect Locomotive Effect
8
Monetary and Fiscal Policies with Perfect Capital
Mobilityand Fixed Exchange Rates
9
The Effects of an Increase in Government
Spending with a Floating Exchange Rate
10
The Effect of a Fall in the Demand for Real Money
Balances on the Position of the LM Schedule