Professional Documents
Culture Documents
ECO/561 Version 9
Interest Rates
The Consolidated Balance Sheet of the Federal Reserve Banks
Tools of Monetary Policy
Targeting the Federal Funds Rate
Monetary Policy, Real GDP, and the Price Level
Monetary Policy: Evaluation and Issues
The Big Picture
Student Guide
ECO/561 Version 9
OBJECTIVE: Project the effect of global economic conditions regarding trade and specialization
business decisions.
Content
Ch. 18: Forward Exchange and International Financial Investment of International Economics
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A Road Map
Exchange Rates in the Short Run
The Long Run: Purchasing Power Parity (PPP)
The Long Run: The Monetary Approach
Exchange Rate Overshooting
How Well Can We Predict Exchange Rates?
Note. The information above is intended to help you complete your assignments. Read chapters
in their entirety, as indicated in the syllabus. Additional information from sections not outlined
above may be needed for classroom discussions.