Open Economy Handout

Open Economy Handout - DL SL NCO S$ D$ Net Capital Outflow...

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r r Loanable Funds Net Capital Outflow Dollars L
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r r Loanable Funds Net Capital Inflow Dollars L L 0
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r r 0 r 0 r Loanable Funds DL SL NCO S$ D$ Net Capital Outflow Dollars L L 0 EVENT: Decrease in the government’s budget surplus
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r r 0 r 0 r Loanable Funds DL SL NCI D$ S$ Net Capital Inflow Dollars L L 0 EVENT: Increase in the government’s budget deficit D$’
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r r 0 r 0 r Loanable Funds DL SL NCO S$ D$ Net Capital Outflow Dollars L L 0 EVENT: Increase in the level of foreign real interest rates
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r r 0 r 0 r Loanable Funds DL SL NCI D$ S$ Net Capital Inflow Dollars L L 0 EVENT: Increase in the level of foreign real interest rates and/or decrease in risk of foreign assets
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r r 0 r 0 r Loanable Funds
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Unformatted text preview: DL SL NCO S$ D$ Net Capital Outflow Dollars L L EVENT: Increase in the perceived risk of U.S. stocks and bonds r r r r Loanable Funds DL SL NCI D$ S$ Net Capital Inflow Dollars L L EVENT: Increase in the perceived risk of holding U.S. stocks and bonds r r r r Loanable Funds DL SL NCO S$ D$ Net Capital Outflow Dollars L L EVENT: Increase in Tariffs on Imports r r r r Loanable Funds DL SL NCI D$ S$ Net Capital Inflow Dollars L L EVENT: Increase in Tariffs on Imports...
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This note was uploaded on 04/07/2008 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue.

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Open Economy Handout - DL SL NCO S$ D$ Net Capital Outflow...

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