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C HAPTER 17 FIXED EXCHANGE RATES AND FOREIGN EXCHAGNE INTERVENTION.

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Presentation on theme: "C HAPTER 17 FIXED EXCHANGE RATES AND FOREIGN EXCHAGNE INTERVENTION."— Presentation transcript:

1 C HAPTER 17 FIXED EXCHANGE RATES AND FOREIGN EXCHAGNE INTERVENTION

2 Figure 17-1 Asset Market Equilibrium with a Fixed Exchange Rate, E O

3 Figure 17-2 Monetary Expansion Is Ineffective Under a Fixed Exchange Rate

4 Figure 17-3 Fiscal Expansion Under a Fixed Exchange Rate

5 Figure 17-4 Effect of a Currency Devaluation

6 Figure 17-5 Capital Flight, the Money Supply, and the Interest Rate

7 Figure 17-6 Effect of a Sterilized Central Bank Purchase of Foreign Assets under Imperfect Asset Substitutability

8 Figure 17AI-1 The Domestic Bond Supply and the Foreign Exchange Risk Premium Under Imperfect Asset Substitutability

9 Figure 17AIII-1 How the Timing of a Balance of Payments Crisis Is Determined


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