Monetary Policy in a Small Open Economy Under Fixed Exchange Rates: General Readings


Coverage of the topics discussed in this lesson can be found in the same place in N. Gregory Mankiw's intermediate text, Macroeconomics, as the coverage of the previous lesson's topics with the addition of Chapter 18, which covers money supply determination, to the group worked through previously. In addition to that chapter, the relevant material is in Chapters 9, 10 and 11 in the 2nd and 3rd editions---the relevant pages for the 3rd edition are pages 250 through 323. The relevant chapters in the 6th edition are Chapters 10, 11 and 12. An alternative is to read the Canadian Edition of this book, written by Gregory Mankiw and William Scarth and also published by Worth Publishers. The relevant chapters and pages in the second edition, which was published in the year 2001, are Chapters 9, 10 and 11, pages 276 through 364, plus Chapter 18. The politics surrounding Canada's adoption of a fixed exchange rate in 1962 and her abandonment of the fixed rate in 1970 is discussed in detail by Eric Helleiner in his book Towards North American Monetary Union, which was published by McGill-Queen's University Press in 2006. The relevant pages are 105 to 125.

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