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]