LESSON 3


Small Open Economy Equilibrium I:

The Balance of Payments and the Exchange Rate


Topic 1: The Balance of Payments

A Copy of Table 1

Topic 2: Autonomous and Induced Transactions: Balance of Payments Equilibrium

A Copy of Table 2

Topic 3: Aggregate Demand and Supply and the Balance of Payments

Topic 4: The Equilibrating Mechanism

Topic 5: The Exchange Rate and the Current Account: Full-Employment Conditions

A Copy of the Figure Representing Full Employment Conditions

Topic 6: Income Adjustments and the Current Account: Less-Than-Full-Employment Conditions

A Copy of the Figure Representing Less-Than-Full-Employment Conditions

Topic 7: Some Empirical Evidence

General Readings

-----

PREPARED BY

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

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