Module Exchange Rate Policy KRUGMAN'S MACROECONOMICS for AP* 43 Margaret Ray and David Anderson.

Slides:

Advertisements

Similar presentations

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

Advertisements

Module Growth Policy: Why Economic Growth Rates Differ KRUGMAN'S MACROECONOMICS for AP* 39 Margaret Ray and David Anderson.

Aggregate Demand Module 17.

Module Supply and Demand: Introduction and Demand

Module Equilibrium in the Aggregate Demand- Aggregate Supply Model

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 6 International Trade, Exchange Rates, and Macroeconomic Policy.

Module Exchange Rate Policy KRUGMAN'S MACROECONOMICS for AP* 43 Margaret Ray and David Anderson.

AP Economics Mr. Bernstein Module 43: Exchange Rate Policy April 15, 2015.

Module Supply and Demand: Changes in Equilibrium

Consumer and Producer Surplus

Module The Production Possibilities Curve Model

Module Aggregate Supply: Introduction and Determinants KRUGMAN'S MACROECONOMICS for AP* 18 Margaret Ray and David Anderson.

Balance of Accounts and Foreign Exchange Markets

Module Putting it All Together

Module 42 May  Foreign exchange market – where currencies are traded  Exchange rates – the prices at which currencies trade.

Copyright © 2004 South-Western Mods The Open Economy: FOREX Models, Graphs, and Practice.

Exchange Rate Policy Chapter An exchange rate regime is a rule governing policy toward the exchange rate.  A country has a fixed exchange rate.

1 of 49 module: 43 >> Krugman/Wells ©2009  Worth Publishers Exchange Rates and Macroeconomic Policy.

Pump Primer : Explain the difference between fixed exchange rates and floating exchange rates. 43.

Module Supply and Demand: Supply and Equilibrium

Exchange Rate Regimes Because governments set quantity of money, they have significant influence on exchange rates, which in turn is important to net.

Module Exchange Rate Policy KRUGMAN'S MACROECONOMICS for AP* 43 Margaret Ray and David Anderson.

Module The Meaning and Calculation of Unemployment KRUGMAN'S MACROECONOMICS for AP* 12 Margaret Ray and David Anderson.

27 Module The Federal Reserve: Monetary Policy KRUGMAN'S

Module Equilibrium in the Aggregate Demand- Aggregate Supply Model

Module 29 The Market for Loanable Funds KRUGMAN'S

Module Comparative Advantage and Trade KRUGMAN'S MACROECONOMICS for AP* 4 Margaret Ray and David Anderson.

Module Exchange Rates and Macroeconomic Policy KRUGMAN'S MACROECONOMICS for AP* 44 Margaret Ray and David Anderson.

Module Interpreting Real Gross Domestic Product KRUGMAN'S MACROECONOMICS for AP* 11 Margaret Ray and David Anderson.

Module Exchange Rate Policy

Module The Circular Flow and Gross Domestic Product KRUGMAN'S MACROECONOMICS for AP* 10 Margaret Ray and David Anderson.

Module Economic Growth in Macroeconomic Models KRUGMAN'S MACROECONOMICS for AP* 40 Margaret Ray and David Anderson.

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

Module Economic Policy and the Aggregate Demand- Aggregate Supply Model odel KRUGMAN'S MACROECONOMICS for AP* 20 Margaret Ray and David Anderson.

Module The Measurement and Calculation of Inflation KRUGMAN'S MACROECONOMICS for AP* 15 Margaret Ray and David Anderson.

Module Monetary Policy and the Interest Rate

Module The Definition and Measurement of Money KRUGMAN'S MACROECONOMICS for AP* 23 Margaret Ray and David Anderson.

Module The Modern Macroeconomic Consensus KRUGMAN'S MACROECONOMICS for AP* 36 Margaret Ray and David Anderson.

Module Comparative Advantage and Trade

1. What is the difference between fixed exchange rates and floating exchange rates? 2. How do countries choose different exchange rate regimes? What considerations.

Consumer and Producer Surplus Lesson Consumer Surplus and the Demand Curve Willingness to Pay – The demand curve is based on the individual choices.

Interpreting Price Elasticity of Demand Unit 3.47.

Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson.

Module The Meaning and Calculation of Unemployment KRUGMAN'S MACROECONOMICS for AP* 13 Margaret Ray and David Anderson.

Module Capital Flows and the Balance of Payments KRUGMAN'S MACROECONOMICS for AP* 41 Margaret Ray and David Anderson.

Module Monetary Policy and the Interest Rate KRUGMAN'S MACROECONOMICS for AP* 31 Margaret Ray and David Anderson.

Module Introduction to Macroeconomics KRUGMAN'S MACROECONOMICS for AP* 2 Margaret Ray and David Anderson.

What is purchasing power parity?. Depreciation The loss of value of a country's currency with respect to a foreign currency If the dollar loses value.

Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson.

Module Productivity and Growth KRUGMAN'S MACROECONOMICS for AP* 38 Margaret Ray and David Anderson.

Module Money, Output, and Prices in the Long Run KRUGMAN'S MACROECONOMICS for AP* 32 Margaret Ray and David Anderson.

KRUGMAN'S MACROECONOMICS for AP* Module The Study of Economics 1 Margaret Ray and David Anderson NEW PICTURE TO COME.

Module Comparative Advantage and Trade KRUGMAN'S MACROECONOMICS for AP* 4 Margaret Ray and David Anderson.

Module The Meaning and Calculation of Unemployment

Exchange Rate Regimes Because governments set quantity of money, they have significant influence on exchange rates, which in turn is important to net.

1 Sect. 8 - The Open Economy: International Trade & Finance Module 41 - Capital Flows & the Balance of Payments What you will learn: The meaning of the.

Module Exchange Rates and Macroeconomic Policy 44.

Module The Foreign Exchange Market KRUGMAN'S MACROECONOMICS for AP* 42 Margaret Ray and David Anderson.

Module Long-run Economic Growth KRUGMAN'S MACROECONOMICS for AP* 37 Margaret Ray and David Anderson.

KRUGMAN'S MACROECONOMICS for AP* 29 Margaret Ray and David Anderson Module The Market for Loanable Funds.

Exchange Rate Policy Lesson 40 Sections 43, 44, 45.

Module Exchange Rates and Macroeconomic Policy

Please read the following License Agreement before proceeding.

Module Exchange Rate Policy

Module Exchange Rates and Macroeconomic Policy

Module Exchange Rates and Macroeconomic Policy

International Trade, Exchange Rates, and Macroeconomic Policy

Exchange Rate Policy 02/28/17 AP Macro Mr. Warner.

Module Exchange Rate Policy

Module Exchange Rates and Macroeconomic Policy

Presentation transcript:

Module Exchange Rate Policy KRUGMAN'S MACROECONOMICS for AP* 43 Margaret Ray and David Anderson

What you will learn in this Module : The difference between fixed exchange rates and floating exchange rates Considerations that lead countries to choose different exchange rate regimes erg.com/markets/c urrencies/ USDEURJPYGBPCHFCADAUDHKD USD– EUR0.7955– JPY – GBP – /22/12

Exchange Rate Policy Governments have more power to influence nominal exchange rates than other prices Exchange rates are important to countries where exports and imports are a large fraction of GDP

Exchange Rate Regimes Exchange Rate Regimes Exchange Rate Regime Fixed Exchange Rate Floating Exchange Rate "Managed" & "Target Zone"

How Can an Exchange Rate Be Held Fixed? How Can an Exchange Rate Be Held Fixed? Exchange Market Intervention Foreign Exchange Reserves Foreign Exchange Controls

The Exchange Rate Regime Dilemma The Exchange Rate Regime Dilemma The Case for Fixed Exchange Rates Facilitates trade by creating certainty about the exchange rate Acts as a check on inflationary policies

The Exchange Rate Regime Dilemma The Exchange Rate Regime Dilemma The Case against Fixed Exchange Rates Requires large foreign currency reserves May divert monetary policy Distorts incentives Opportunity for corruption

Figure 43.1 Exchange Market Intervention Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers