McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 23: Internal and External Balance with Fixed Exchange Rates.

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McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved Chapter 23: Internal and External Balance with Fixed Exchange Rates

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved A Simplified Balance Sheet

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.1 Key Balance-Sheet Items, the Fed and ECB, December 31, 2010 (Billions of U.S. Dollars)

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Exports Plus Imports as a Percentage of GDP Figure 23.2 Expanding the Money Supply Worsens the Balance of Payments with Fixed Rates

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 2.2 The Market for Motorbikes: Demand and Supply Figure 23.3 Payments and Adjustments for a Surplus Country with Fixed Rates

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.4 Expansionary Monetary Policy with Fixed Rates

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.5 How Expansionary Fiscal Policy Affects the Balance of Payments with Fixed Rates

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.6 Expansionary Fiscal Policy with Fixed Exchange Rates

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.7 With Perfect Capital Mobility, Monetary Policy Is Impotent but Fiscal Policy is Strong

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.8 An Adverse International Capital-Flow Shock

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure 23.9 An Adverse International Trade Shock

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure Policies for Internal and External Balance

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved A Tale of Three Countries

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved A Tale of Three Countries

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure How Monetary and Fiscal Policy Could Combine to Cure Both Unemployment and Balance-of-Payments Deficit

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure Monetary-Fiscal Recipes for Internal and External Balance

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure Devaluation of the Country’s Currency

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure Devaluation Affects of Trade Balance

Copyright  2012 by The McGraw-Hill Companies, Inc. All rights reserved Figure The J Curve: How the Trade Balance Probably Responds to a Drop in the Value of a Country’s Currency