Term
| Balance of Payments Identity |
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Definition
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Definition
Assets: EX-IM
Official Settlements Balance + Nonreserve Financial Account |
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Definition
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Definition
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Term
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Definition
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Term
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Definition
| C + I + G + (EX-IM) = GNE + TB |
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Term
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Definition
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Term
| Uncovered Interest Parity Condition |
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Definition
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Term
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Definition
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Term
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Definition
| π x (M/P) [tax rate x tax base) |
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Term
| Benefits of Fixed ER Regime |
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Definition
| Lower transaction costs, increased trade, investment, and migration to home country |
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Term
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Definition
EP*/P (increasing)
Y-T (decreasing)
Y*-T* (increasing) |
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Term
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Definition
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Term
| ISLM: Money Supply Increases |
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Definition
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Term
| ISLM: Foreign Income decreases |
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Definition
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Term
| ISLM: Investors expect a depreciation of home currency |
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Definition
| FR shifts right, IS shifts right |
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Term
| ISLM: Government spending Increases |
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Definition
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Term
| ISLM: Rise in future expected exchange rate |
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Definition
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Term
| ISLM: rise in foreign interest rate |
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Definition
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Term
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Definition
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Term
| ISLM: Rise in foreign prices P* |
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Definition
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Term
| ISLM: Fall in home prices P |
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Definition
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Term
| ISLM: Money Supply decreases |
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Definition
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Term
| ISLM: Foreign Income increases |
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Definition
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Term
| ISLM: Investors expect an appreciation of home currency |
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Definition
| FR shifts left, IS shifts left |
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Term
| ISLM: Government spending decreases |
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Definition
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Term
| ISLM: Decrease in future expected exchange rate |
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Definition
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Term
| ISLM: fall in foreign interest rate |
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Definition
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Term
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Definition
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Term
| ISLM: Fall in foreign prices P* |
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Definition
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Term
| ISLM: rise in home prices P |
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Definition
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