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The Macroeconomics of Open Economies

principles of economics

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10 views6 pages

The Macroeconomics of Open Economies

principles of economics

Uploaded by

Gart Desa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

11

THE MACROECONOMICS OF OPEN ECONOMIES


Open-Economy
Macroeconomics:
31
Basic Concepts

Copyright © 2006 Thomson Learning


Figure 1 The Increasing Openness of the World
Economy

Copyright © 2004 South-Western


Figure 2 US National Saving, Domestic
Investment, and Net Foreign Investment

(a) National Saving and Domestic Investment (as a percentage of GDP)

Percent
of GDP
20

Domestic investment
18

16

14

12 National saving

10
1960 1965 1970 1975 1980 1985 1990 1995 2000

Copyright © 2004 South-Western


Figure 2 US National Saving, Domestic
Investment, and Net Foreign Investment

(b) Net Capital Outflow (as a percentage of GDP)

Percent
of GDP
4

2
Net capital
1 outflow

–1

–2

–3

–4
1960 1965 1970 1975 1980 1985 1990 1995 2000

Copyright © 2004 South-Western


Figure 3 Money, Prices, and the Nominal
Exchange Rate During the German Hyperinflation
Indexes
(Jan. 1921 = 100)

1,000,000,000,000,000

Money supply
10,000,000,000

Price level
100,000

Exchange rate
.00001

.0000000001
1921 1922 1923 1924 1925
Copyright © 2004 South-Western

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