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What is meant by the General Arrangements to Borrow? Stand by arrangements? swap arrangements? Special Drawing Rights? gold pool? two-tier gold market?
In what way did the Bretton Woods system operate as intended? In what way did it not? How did the Bretton Woods system evolve over the years?
What is meant by the Bretton Woods system being a gold-exchange standard? How were exchange rates determined under the Bretton Woods system?
What type of international monetary system operated from 1920 to 1924? What happened between 1925 and 1931? What happened after 1931?
How was adjustment to balance-of-payments disequilibria under the gold standard explained. How did adjustment actually take place under the gold standard?
What are the characteristics of a good international monetary system? How can an international monetary system be evaluated?
What is meant by an international monetary system? How can international monetary systems be classified?
Review the experience with international macroeconomic policy coordination among the leading industrial countries during the past two decades.
Explain why each nation might pursue a loose fiscal policy and a tight monetary policy in the absence of international policy coordination but the opposite.
Why a single central bank and currency for the countries of the European Union mean that its members can no longer have an independent monetary policy.
Explain why monetary policy would be completely ineffective under a fixed exchange rate system and perfectly elastic international capital flows.
How large are potential benefit from greater macroeconomic policy coordination? How likely is it that will see much greater macroeconomic policy coordination?
What is meant by direct controls? trade controls? exchange controls? Explain how the most important forms of trade and exchange controls operate to affect.
Explain why the usefulness of expansionary fiscal policy or easy monetary policy to correct a recession depends on how flexible domestic prices are downward.
Examine the effect on the nation's aggregate demand curve of an autonomous worsening of a nation's trade balance under fixed exchange rates.
Explain in terms of labor market imperfections how a downward shift in the aggregate demand curve would result in a temporary reduction in output.
Explain why an unexpected increase in prices in the face of sticky wages can explain an upward sloping short-run aggregate supply curve.
Using an IS -LM diagram, show the effect of an expansionary fiscal policy on the aggregate demand curve.
Using an IS -LM diagram, show graphically that for a given LM curve, the flatter is the IS curve, the flatter or more elastic is the aggregate demand curve.
Using an IS -LM diagram, show graphically how a reduction in the general price level in a nation results in a movement down the aggregate demand curve.
What value, if any, would you use for the cost of unsatisfied demand?
Why is fiscal policy effective but monetary policy ineffective under fixed exchange rates? Why is the opposite true under flexible rates?
How does the effect of a real-sector shock on the nation's aggregate demand differ under fixed and flexible exchange rates?
How is an open economy's aggregate demand curve derived under flexible exchange rates? Why is this more elastic than if the nation were a closed economy?
Why must the Marshall-Lerner condition be satisfied for an open economy's aggregate demand curve to be more elastic than if the economy were closed?