International Macroeconomics

Consider a small open economy that lives for two periods, only, (t and t + 1; forall purposes to some extent if it makes it easier you can think of this as t =0 and t = 1) and is inhabited by a continuum of identical individuals grouped into anaggregate risk-sharing...

International Macroeconomics

Consider a small open economy that lives for two periods, only, (t and t + 1; forall purposes to some extent if it makes it easier you can think of this as t =0 and t = 1) and is inhabited by a continuum of identical individuals grouped into anaggregate risk-sharing...

International Macroeconomics

1. Write a review essay on the Twin Deficits, that focuses on whether a government deficit causes a current account deficit. (50 marks) 2. Consider the IS/LM/BP scenario, and suppose that the government imposes a proportional tax rate . (a) Show that the effect on...