Cheap Focusing clearly and simply on the underlying economics of exchange rate determination and balance of payments, McCallum presents basic concepts within historical perspectives of the US and global economy, and introduces a basic analytical model, usable with fixed and floating exchange rates, in which capital mobility is complete, real exchange rates are variable, and investment spending is endogenous. Variants of the model are used for short- and long-run comparative static analyses. In addition, there is a chapter devoted to dynamic analysis with rational expectations, and a concluding section o sale
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