Chapter 18 Spending and the Exchange Rate in the Keynesian Model

1. Chapter 18 Spending and the Exchange Rate in the Keynesian Model

2. Figure 18.1 Insulation Under Floating Exchange Rates

3. Figure 18.2 Dilemma: External Balance or Internal Balance?

4. Figure 18.3 Policy Combinations That Give External Balance

5. Figure 18.4 Policy Combinations That Give Internal Balance

6. Figure 18.5 The Swan Diagram of Internal and External Balance

7. Figure 18.6 Effect of a Fall in the Interest Rate, I

8. Figure 18.7 Monetary Expansion

9. Figure 18.8 Fiscal Expansion with Crowding-Out of Investment

10. Figure 18.9 Devaluation with Crowding-Out

11. Figure 18.A.1 Increase in the Exchange Rate with the Laursen-Metzler-Harberger Effect

12. Figure 18.A.2 External Disturbance under a Floating Exchange Rate