top of page
Loanable funds in the open economy -- see how external interest rates, domestic savings and  investment, and the real exchange rate are jointly determined.
Anchor 1

This is Part I of the video treatment of the open economy loanable funds model.

 

It is a review of the theory, and it shows how net exports, the saving / investment balance, and the real exchange rate are jointly determined -- all in one model.

Click on the icon below to download the spreadsheet-based workshop!!

This is Part II of the video treatment of the open economy loanable funds model.

 

It features three spreadsheet based applications:

 

Impacts of higher US interest rates on emerging market real exchange rates – the “Taper Tantrum.”

 

A fiscal expansion in an economy considered to be ‘sound’ by global investors.

 

A fiscal expansion in an economy not considered to be ‘sound’ by global investors.

 

 

 

bottom of page