国际经济学第九版英文课后答案 第18单元.docx
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国际经济学第九版英文课后答案第18单元
CHAPTER18
OPEN-ECONOMYMACROECONOMICS:
ADJUSTMENTPOLICIES
OUTLINE
*18.1Introduction
CaseStudy18-1:
Government,PrivateSector,andCurrentAccountBalances
intheG-7Countries
*18.2InternalandExternalBalancewithExpenditure-Changingand
Expenditure-SwitchingPolicies
18.3EquilibriumintheGoodsMarket,intheMoneyMarket,andinthe
BalanceofPayments
18.4FiscalandMonetaryPoliciesforInternalandExternalBalance
withFixedExchangeRates
18.4aFiscalandMonetaryPoliciesfromExternalBalanceandUnemployment
18.4bFiscalandMonetaryPoliciesfromExternalDeficitandUnemployment
18.4cFiscalandMonetaryPolicieswithElasticCapitalFlows
18.4dFiscalandMonetaryPolicieswithPerfectCapitalMobility
CaseStudy18-2:
RelationshipBetweenU.S.CurrentAccountandBudgetDeficits
18.5TheIS-LM-FEModelwithFlexibleExchangeRates
18.5aIS-LM-FEModelwithFlexibleExchangeRatesandImperfectCapitalMobility
CaseStudy18-3:
EffectofU.S.FiscalPolicyintheUnitedStatesandAbroad
18.5bIS-LM-FEModelwithFlexibleExchangeRatesandPerfectCapitalMobility
CaseStudy18-4:
EffectofMonetaryPolicyintheU.S.andOtherOECDCountries
*18.6PolicyMixandPriceChanges
18.6aPolicyMixandInternalandExternalBalance
18.6bEvaluationofthePolicyMixwithPriceChanges
18.6cPolicyMixintheRealWorld
CaseStudy18-5:
U.S.MonetaryandFiscalPoliciesinthe1980sandEarly1990s
*18.7DirectControls
18.7aTradeControls
18.7bExchangeControls
CaseStudy18-6:
DirectControlsonInternationalTransactionsAroundtheWorld
18.7cOtherDirectControlsandInternationalCooperation
Appendix:
A18.1DerivationoftheISCurve
A18.2DerivationoftheLMCurve
A18.3DerivationoftheFECurve
A18.4MathematicalSummary
KeyTerms
InternalBalanceTransactiondemandformoney
ExternalbalanceSpeculativeDemandformoney
Expenditure-changingpoliciesBPcurve
Expenditure-switchingpoliciesPhillipscurve
PrincipleofeffectivemarketclassificationExchangecontrols
IScurveMultipleexchangerates
LMcurve
LectureOutline:
1.Thisisoneofthemostimportantandchallengingofthechapters.Sections1-2and6-7arecoresectionsandshouldbecoveredinanyinternationaleconomicscourse.Sections3-5introducetheIS-LM-BPmodelandmaybeskippedifintermediatemacroeconomicsisnotarequirementforthecourse.ThisisuptotheInstructor,however.
2.Inthefirstlecture,Iwouldcoversections1and2andassignproblems1-3.ThemostimportantanddifficultparthereistheSwandiagram.Ifstudentsaretoknowanythingabouteconomicpoliciestocorrectinternalandexternalimbalances,thisisit.
3.Sections3-5requiretwoclassestobecoveredadequatelyifstudentshadintermediatemacroeconomics.Otherwise,itwouldtakethreeclasses,ortheycanbeskipped.Ifsections3-5arecovered,Iwouldassignproblems4-11andgooversomeoftheseinclasstomakesurethatstudentsfullyunderstandthemodelandthepoliciesthatcanbeusedtocorrect
internalandexternalimbalances.
4.Iwouldcoversection6inthenextclassandassignproblems12-14.Themostimportantaspectofthissectionistheexplicitrecognitionofpricestabilityasthethirdimportantobjectiveofnationsandtheproblemsthatthiscreateswiththepoliciesathandtoachieveinternalandexternalbalancecompletely.IwouldalsocoverCaseStudies18.1-18-3.
5.Iwouldleavesection7forstudentstocoverbythemselves.Thesectionisimportantbutmostlydescriptiveandstudentstoreaditontheirownandbringquestionstoclass.
AnswertoProblems:
1.PointChangeinDChangeinR
C1increasedevalue
C4increaserevalue
C7decreaserevalue
C10decreasedevalue
2.PointChangeinDChangeinR
C2increasenone
C5nonerevalue
C8decreasenone
C11nonedevalue
3.PointChangeinDChangeinR
C3increaserevalue
C6decreaserevalue
C9decreasedevalue
C12increasedevalue
4.a.ThenationfacesasurplusatYE=1,000becausePisbelowpointE.
b.AtYE=1,000andwithaMPM=0.15,thenationfacesasurplusof(200)(0.15)=30.
5.Thenationofproblem4canreachfullemploymentwithexternalbalancewiththe
expansionaryfiscalpolicythatshiftsISupwarduntilitcrossestheBPlineatpointFandthetightmonetarypolicythatshiftsLMupwarduntilitalsocrossestheBPlineatpointF.
6.ThenationrequirestheexpansionaryfiscalthatshiftstheIScurveupuntilitcrossestheBPcurveatpointFandthetightmonetarypolicythatshiftsuptheLMcurveuntilitcrossestheBPcurveatpointF.
SeeFigure1.
7.Ifthefull-employmentlevelofnationalincomeisYE=1,000,thenationrequirestheexpansionaryfiscalpolicythatshiftstheIScurveupuntilitcrossestheBPcurveatpointB'andthetightmonetarypolicythatshiftsuptheLMcurveuntilitcrossestheBPcurveatpointB'.
SeeFigure2.
8.a.IftheBPcurvewereflatterthantheLMcurve,thenationwouldrequiretheexpansionaryfiscalpolicythatshiftstheIScurveupuntilitcrossesthePBcurveatpointFandtheeasymonetarypolicythatshiftsdowntheLMcurveuntilitcrossestheBPcurveatpointF.
SeeFigure3.
b.WhentheBPcurveisflatterthantheLMcurve,thenationrequiresaneasyratherthanatightmonetarypolicytoachieveinternalandexternalbalancesimultaneously.
9.Withperfectlyelasticinternationalcapitalflows,theBPlinewouldbehorizontalandmonetarypolicywouldbecompletelyineffective.Thenationcouldreachinternalandexternalbalancewiththeappropriateexpansionaryfiscalpolicyonly.
10.StartingfrompointEinFigure18-8inthetext,thenationcouldusethefiscalpolicythatshiftstheIScurvetoIS',intersectingtheLMcurveatpointZ(seeFigure4onthenextpage).SincepointZistotherightoftheBPcurve,thenationwillhaveadeficitinitsbalanceofpayments.Withflexibleexchangerates,thenation'scurrencydepreciatesandsotheBPcurveshiftstotheright.ThisinducesaleftwardshiftintheLMcurvetoLM',suchthatcurveIS"andLM'intersectontheBPcurveatpointE'.SinceatpointE'thenationstillfacesunemployment,thenationwouldneedtoapplyadditionaldosesofexpansionaryfiscalpolicyuntilallthreemarketsareinequilibriumatthefullemploymentlevelofnationalincomeofYF=1500.
11.StartingfrompointEinFigure18-8inthetext,thenationcouldusethefiscalpolicythatshiftstheIScurvetoIS'(seeFigure5onthenextpage),intersectingtheLMcurveatpointZ.SincepointZisnowtotheleftoftheBPcurve,thenationwillhaveasurplusinitsbalanceofpayments.Withflexibleexchangerates,thenation'scurrencyappreciatesandsotheBPcurveshiftstotheleft.ThisinducesaleftwardshiftintheIScurvetoIS"andarightwardshiftintheLMcurvetoLM',suchthatcurveIS"andLM'intersectontheBPcurveatpointE'.SinceatpointE'thenationstillfacesunemployment,thenationwouldneedtoapplyadditionaldosesofexpansionaryfiscalpolicyuntilallthreemarketsarein
equilibriumatthefullemploymentlevelofnationalincomeofYF=1500.
12.PointFiscalPolicyMonetaryPolicy
C3expansionaryeasy
C6contractionaryeasy
C9contractionarytight
C12expansionarytight
13.Point
C1expansionarytight
C5contractionaryeasy
C7contractionaryeasy
C11expansionarytight
14.PointFiscalPolicyMonetaryPolicy
C4noneeasy
C8contractionarynone
C10nonetight
App.1DrawinpanelIVofFigure18-11theI(i)+X+Gfunction50unitstotheleftof
I(i)+X,anddrawinpanelItheIS'function125unitsontherightofIS
[theS(Y)+M(Y)functionremainsunchanged].Drawadashedrectanglewithcorners(Y=1125,i=10%)ontheIS'line,(Y=1125,leakages=500)ontheS(Y)+M(Y)line,(injections=500,leakages=500)onthe45degreeline,and(injections=500,i=10%)ontheI(i)+X+Gline.Sincreasesby(DY)(MPS)=(125)(0.25,fromsection17.3c)=31.25,Mincreasesby(DY)(MPM)=(125)(0.15)=18.75foratotalincreaseinleakagesof50equaltotheincreaseininjectionsofG=50.
App.2aDrawinpanelIIIofFigure18-12theMS'line100unitstotheleftofMS,inpanelIVtheML'line100unitstotherightofML,andinpanelItheLM'line500unitstotherightofLM(theMTlineinpanelIIremainsunchanged).Drawadashedrectanglewithcorners(Y=1250,i=8%)ontheLM'line,(Y=1250,MT=500)ontheMTline,(ML=400,MT=500)ontheMS'line,and(ML=400,i=8%)ontheML'line.
App.2bXeroxFigure18-12anddrawinpanelIItheMT'line500unitstotheleftofMT,andinpanelItheLM"line500unitstotheleftofLM(theMSandMLlinesremainunchanged).Drawadashedrectanglewithcorners(Y=500,i=10%)ontheLM"line,(Y=500,MT=400)ontheMT'line,(ML=400,MT=400)ontheMSline,and(ML=400,i=10%)ontheMLline.
App.2cYE=1000,MT=600leavingML=400ati=10%.LM"shiftsbacktoLM.
App.3DrawinpanelIIofFigure18-13the(X-M)'line50unitsaboveX-M,andinpanelItheBP'line4unitsbelowBP(theSClineinpanelIVremainsunchanged).Drawadashedrectanglewithcorners(YE=1000,i=6%)ontheBP'line,(YE=1000,X-M=50)onthe(X-M)'line,(SC=-50,X-M=50)onthe45degreeline,and(SC=-50,i=6%)ontheSCline.
App.4aThereductioninG*causesYEtofallbythereductioninG*timesthemultiplier.ThefallinYEinducesatotalfallinSandMequaltothefallinG*(graphically,thiscanbeshownbytheoppositechangesfromtho