Download Introductory Lecture

Economics 182 - Spring 2006
ƒ Professor Maurice Obstfeld
ƒ Office Hours: Wednesday, 1 - 2 P.M., 699 Evans
ƒ GSIs: Gabriela Dobrescu, Guillermo Noguera
ƒ Course requirements: Final, Midterm, Problem Sets
ƒ Text: Paul R. Krugman and Maurice Obstfeld,
ƒ
International Economics: Theory and Policy, 7th edition
(Boston: Addison Wesley, 2006).
http://www.econ.berkeley.edu/~obstfeld/182_sp06/182_
s06.shtml
Copyright © 2003 Pearson Education, Inc.
Slide 12-1
United States:Trade/Income Ratio since 1790
0.25
0.2
0.15
0.1
0.05
Copyright © 2003 Pearson Education, Inc.
2000
1986
1972
1958
1944
1930
1916
1902
1888
1874
1860
1846
1832
1818
1804
1790
0
Slide 12-2
Founding Parents -- of the Modern U.S. Economy
.
Washington
Copyright © 2003 Pearson Education, Inc.
Hamilton
Slide 12-3
U.S. Balance of Trade since 1790 (Ratio to National Income)
0.08
0.06
0.04
0.02
1999
1988
1977
1966
1955
1944
1933
1922
1911
1900
1889
1878
1867
1856
1845
1834
1823
1812
1801
-0.02
1790
0
-0.04
-0.06
-0.08
-0.1
Copyright © 2003 Pearson Education, Inc.
Slide 12-4
US Share World Output (PPP-Adjusted)
0.245
0.24
0.235
0.23
0.225
0.22
0.215
0.21
0.205
0.2
Copyright © 2003 Pearson Education, Inc.
Slide 12-5
GDP Per Capita in 3 Countries, 1996 U.S. Dollars
35000
30000
25000
20000
Argentina
USA
15000
Korea
10000
5000
19
50
19
54
19
58
19
62
19
66
19
70
19
74
19
78
19
82
19
86
19
90
19
94
19
98
0
Copyright © 2003 Pearson Education, Inc.
Slide 12-6
RMB/$ (left axis) and euro/$ (right axis) exchange rates
8.3
1.4
8.25
1.2
8.2
1
8.15
0.8
8.1
0.6
8.05
0.4
8
0.2
euros/$
0
Ja
n99
Ju
l-9
9
Ja
n00
Ju
l-0
0
Ja
n01
Ju
l-0
1
Ja
n02
Ju
l-0
2
Ja
n03
Ju
l-0
3
Ja
n04
Ju
l-0
4
Ja
n05
Ju
l-0
5
7.95
RMB/$
Copyright © 2003 Pearson Education, Inc.
Slide 12-7
Economics 182 - Spring 2006
ƒ National Income Accounting and the Balance of
ƒ
ƒ
ƒ
ƒ
ƒ
Payments
Exchange Rates and the Foreign Exchange Market:
An Asset Approach
Money, Interest Rates, and Exchange Rates
Price Levels and the Exchange Rate in the Long Run
Output and the Exchange Rate in the Short Run
Fixed Exchange Rates and Foreign Exchange
Intervention
Copyright © 2003 Pearson Education, Inc.
Slide 12-8
Economics 182 - Spring 2006
ƒ The International Monetary System, 1870-1973
ƒ Macroeconomic Policy and Coordination under
ƒ
ƒ
ƒ
Floating Exchange Rates
Optimum Currency Areas and the European
Experience
The Global Capital Market: Performance and Policy
Problems
Developing Countries: Growth, Crisis, and Reform
Copyright © 2003 Pearson Education, Inc.
Slide 12-9