文档介绍:Chapter 18
The International ary System,1870-1973
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anization
Macroeconomic Policy Goals in an Open Economy
International Macroeconomic Policy Under the Gold Standard, 1870-1914
The Interwar Years, 1918-1939
The Bretton Woods System and the International ary Fund
Internal and External Balance Under the Bretton Woods System
Analyzing Policy Options Under the Bretton Woods System
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The External Balance Problem of the United States
Worldwide Inflation and the Transition to Floating Rates
Summary
anization
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Introduction
The interdependence of open national economies has made it more difficult for governments to achieve full employment and price stability.
The channels of interdependence depend on the ary and exchange rate arrangements.
This chapter examines the evolution of the international ary system and how it influenced macroeconomic policy.
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Macroeconomic Policy Goals in an Open Economy
In open economies, policymakers are motivated by two goals:
Internal balance
It requires the full employment of a country’s resources and domestic price level stability.
External balance
It is attained when a country’s current account is neither so deeply in deficit nor so strongly in surplus.
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Internal Balance: Full Employment and Price-Level Stability
Under-and overemployment lead to price level movements that reduce the economy’s efficiency.
To avoid price-level instability, the government must:
Prevent substantial movements in aggregate demand relative to its full-employment level.
Ensure that the domestic money supply does not grow too quickly or too slowly.
Macroeconomic Policy Goals in an Open Economy
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Macroeconomic Policy Goals in an Open Economy
External Balance: The Optimal Level of the Current Account
External balance has no full employment or stable prices to apply to an economy’s external transactions.
An economy’s trade can cause macroeconomic problems depending on several factors:
The economy’s particular circumstances
Conditions in the outsi