An open economy macroeconomics reader
This book draws together seminal contributions on the nature of macroeconomics in open economies and illuminates the material by using:
This is an essential guide to the subject for students, as commented upon by the most influential commentators.
Technically speaking, open economies are any that engage in international trade. However, the smaller the economy, the more "open" it can be presumed to be because fluctuations in international trade have a far greater impact on a country's trading conditions and it is unlikely to produce the full range of its own goods and services. The US, therefore, can be considered to be a relatively closed economy as its imports and exports amount to only a fraction of its gross domestic product. Smaller countries, on the other hand, rely much more heavily on their neighbours. "Open Economy Macroeconomics: A Reader" draws together the seminal contributions to the literature on macroeconomics in open economies and illuminates the material by way of a range of key features: discussion questions; suggestions for further reading; reference to the key journal articles in the field; and boxed key terms.
Part I: Stablisation policy in the Mundell-Flemming model
Part II: Expenditure-switching policy: devaluation and balance of payments adjustment
Part III: Achieving the internal and external balance simultaneously: targets and instruments
Part IV: Interdependence and Macroeconomic Policy Co-ordination
Part V: The international monetary system and monetary policy: design and institutions
Part VI: Exchange rate determination and policy
Part VII: Monetary unions and the EMU
Part VIII: Tax policy in open economies: competition vs. co-ordination
Part IX: Labour market policy and institutions: a comparative assessment