11-03-15-Rise in Foreign Interest Rates-Short Run

# 11-03-15-Rise in Foreign Interest Rates-Short Run -...

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Rise In Foreign Real Rates Of  Interest –Short Run March 15, 2011

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CA STIG Y STIG r=.06 CA pf=0,e=.4 0 Q 1000 LM ms=5,r=.06 Economy Starts In Equilibrium with r = .06
CA STIG Y STIG’ r=.07 CA pf=0,e=.4 0 Q 1000 LM’ ms=5,r=.07 Suddenly r = .07, Which Shifts STIG and LM LM ms=5,r=.06 STIG r=.06

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CA STIG Y STIG’ r=.07 CA pf=0,e=.4 0 Q 1000 LM’ ms=5,r=.07 This Shows The Triangle Of Disequilibrium
CA STIG Y STIG’ r=.07 CA pf=0,e=.4 0 Q 1000 LM’ ms=5,r=.07 The Elimination Of The Triangle Of Disequilibrium Under Fixed Exchange Rates LM” ms=4.775,r=.07 980 6

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CA STIG Y STIG’ r=.07 CA pf=0,e=.4 0 Q 1000 The New Equilibrium Under Fixed Exchange Rates LM” ms=4.775,r=.07 6 980
CA STIG Y STIG’ r=.07 CA pf=0,e=.4 0 Q 1000 LM’ ms=5,r=.07 The Triangle Of Disequilibrium Again

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CA STIG Y STIG’ r=.07 CA pf=0,e=.4 0 Q 1000 LM’ ms=5,r=.07 The Elimination Of The Triangle Of Disequilibrium Under Flexible Exchange Rates

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11-03-15-Rise in Foreign Interest Rates-Short Run -...

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