EXCHANGE RATES AND THE OPEN ECONOMY BOOKS x Mankiw, Macroeconomics (5th edition), chapters 5, 12 x Dornbusch, Fisher and Startz, Macroeconomics (9th edition, international edition), chapter 19 (International Adjustment and Interdependence) [DFS] x Blanchard, Macroeconomics (3rd edition) Chapters 14, 15, 16, 17 [B] PAPERS x Obstfeld and Rogoff, The Mirage of Fixed Exchange Rates, Journal of Economic Perspectives, 1995 [OR] x Allsopp and Vines, The Assessment: Macroeconomic Policy after EMU, Oxford Review of Economic Policy, vol 14 n 3, Autumn 1998 [AV] TOPICS FOR DISCUSSION x The Mundell-Flemming Model and Implications for Stabilisation Policies [M, AV] x How do Countries with Fixed Exchange Rates Deal with Balance of Payments Crisis? [DFS, OR] x Implications of Consumers’ Expectations: The Fisher Effect and the Yield Curve [B, ch. 14, 15] x How Do Consumers’ Expectations Affect the Business Cycle? [B, ch. 16, 17]