文档介绍：A Macroeconomic Theory of the Open Economy
Chapter 30
Key Macroeconomic Variables in an Open Economy
The important macroeconomic variables of an open economy include:
net exports
net foreign investment
nominal exchange rates
real exchange rates
Basic Assumptions of a Macroeconomic Model of an Open Economy
The model takes the economy’s GDP as given.
The model takes the economy’s price level as given.
The Market for Loanable Funds
S = I + NFI
At the equilibrium interest rate, the amount that people want to save exactly balances the desired quantities of investment foreign investment.
The Market for Loanable Funds
The supply of loanable es from national saving (S).
The demand for loanable es from domestic investment (I) foreign investment (NFI).
The Market for Loanable Funds
The supply and demand for loanable funds depend on the real interest rate.
A higher real interest rate encourages people to save and raises the quantity of loanable funds supplied.
The interest rate adjusts to bring the supply and demand for loanable funds into balance.
The Market for Loanable Funds
Quantity of
Loanable Funds
Real
Interest
Rate
Demand for loanable funds (for domestic investment foreign investment)
Supply of loanable funds
(from national saving)
Equilibrium
quantity
Equilibrium
real interest
rate
The Market for Loanable Funds
At the equilibrium interest rate, the amount that people want to save exactly balances the desired quantities of domestic investment foreign investment.
The Market for Foreign-Currency Exchange
The two sides of the foreign-currency exchange market are represented by NFI and NX.
NFI represents the imbalance between the purchases and sales of capital assets.
NX represents the imbalance between exports and imports of goods and services.
The Market for Foreign-Currency Exchange
In the market for foreign-currency exchange, . dollars are traded for foreign currencies.
For an economy as a whole, NFI and NX must balance each oth