McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Chapter 29
Exchange Rates and the
International Financial System
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
T-213
Figure 29-1
Source,U.S,Department of Commerce
Growing U.S,Openness
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Openness of Different
Economies,1997
T-214
Figure 29-2
Source,World Bank,www.worldbank.org/data/wdi/
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Exchange-Rate Determination
T-215
Figure 29-3
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
A Decrease in Demand for Dollars
Leads to Dollar Depreciation
T-216
Figure 29-4
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Monetary Tightening Increases Demand for
Dollars and Produces Dollar Appreciation
T-217
Figure 29-5
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
PPP Calculations Change the
Relative Size of Nations,1998
T-218
Figure 29-6
Source,World Bank,Note that outputs are shown on a ratio scale
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Hume’s Four-Pronged International
Adjustment Mechanism
T-219
Figure 29-7
McGraw-Hill/Irwin Copyright ? 2001 The McGraw-Hill Companies,Inc,All rights reserved,
Governments Intervene to Defend
Fixed Exchange Rate
T-220
Figure 29-8