LESSON 8

Small Open Economy Equilibrium V:

Additional Policy Issues

Topic 1: Commercial Policy

Topic 2: Effects of a Devaluation

Topic 3: The Forces Determining the Real Exchange Rate Under Full-Employment Conditions

Topic 4: Exchange Rate Overshooting

Topic 5: Monetary Policy, Interest Rates and the Exchange Rate

Topic 6: Purchasing Power Parity

Topic 7: Rational Expectations and Monetary Policy

General Readings

PREPARED BY

John E. Floyd
Professor of Economics, University of Toronto
Toronto, Ontario, Canada

Copyright, John E. Floyd
j.floyd@utoronto.ca