copyright © 2006 pearson addison-wesley. all rights reserved. chapter 6 international trade,...

Copyright © 2006 Pearson Addison-Wesley. All rights reserved.

Chapter 6

International Trade, Exchange Rates, and Macroeconomic Policy

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6-2

Table 6-1 The U.S. Balance of Payments, Selected Years


Figure 6-1 The U.S. Current Account Balance and Its Net International Investment Position, 1975–2004


Table 6-2 Daily Quotations of Foreign Exchange Rates


Figure 6-2 Foreign Exchange Rates of the Dollar Against Four Major Currencies, Quarterly, 1970–2005 (1 of 2)


Figure 6-2 Foreign Exchange Rates of the Dollar Against Four Major Currencies, Quarterly, 1970–2005 (2 of 2)


Figure 6-2 Foreign Exchange Rates of the Dollar Against Four Major Currencies, Quarterly, 1970–2005


Figure 6-3 Determination of the Price in Swiss Francs of the Dollar


International Perspective Big Mac Meets PPP


Figure 6-4 Nominal and Real Effective Exchange Rates of the Dollar, 1970–2004


Figure 6-5 Foreign Official Holdings of Dollar Reserves as a Percent of U.S. GDP


Figure 6-6 U.S. Real Net Exports and the Real Exchange Rate of the Dollar, 1970–2004


Figure 6-7 The U.S. Real Corporate Bond Rate and the Real Exchange Rate of the Dollar, 1970–2004


Figure 6-8 Effect of an Increase in the Money Supply with Fixed Exchange Rates


Figure 6-9 Effect of a Fiscal Policy Stimulus with Fixed Exchange Rates


Figure 6-10 Effect of a Monetary and Fiscal Policy Stimulus with Flexible Exchange Rates


Figure 6-11 The BP Line in a Small and Large Open Economy


Summary of Monetary and Fiscal Policy Effects in Open Economies

Documents