International Macroeconomics [Hardcover]

International Macroeconomics provides students with an analytically rigorous introduction to the impact of globalization on macroeconomics.

• Presents an analytically rigorous introduction to the field and uniquely includes optional econometric studies
• Provides a unified macroeconomic model to examine rigorously international macroeconomics and then focuses this model on historic cases, institutions, and specific countries, dealing with various types of macroeconomic crises
• Provides a strong policy orientation by an author who worked for many years at the IMF
• Is supported by a website with extensive solutions for the problem sets, PowerPoint slides, and an update on the 08-09 meltdown

Preface ix

Part 1 Foundations 1

1 An Overview of the Book 3

1.1 What is International Macroeconomics? 4

1.2 The International Macroeconomics Toolkit 9

1.3 The Contents of this Book 10

1.4 Summary 15

2 Open-economy Macroeconomic Accounting 17

2.1 The Balance of Payments Accounts 18

2.2 Sub-accounts in the Balance of Payments 22

2.3 Basic BOP Facts for the United States 29

2.4 The NIPA in an Open Economy: Aggregate Identities 31

2.5 Sectoral Identities 37

2.6 Summary 41

3 Macroeconomic Influences on the Foreign Exchange Market 46

3.1 Exchange Rate Concepts 47

3.2 Supply and Demand for Foreign Exchange 50

3.3 Relative Prices of Domestic and Foreign Goods: The Real Exchange Rate 52

3.4 Relative Returns on Domestilã)