Chapter 32 goes in depth on the open market trade and how it is affected by government policies. This chapter brings together many of the concept we have previously looked over in Macroeconomics. To understand open market trading we must understand the markets that make up saving, the market for loanable funds and the market for foreign currency exchange. Basically the market for loanable funds is used to find the net capitol outflow and that is used to find the supply of dollars in the market for foreign currency exchange. Government intervention causes these curves to shift left or right which cause an effect for the other market.I give this chapter a 2 out of 3. Even though we have previously covered these topics I am still a little confused in how the market for currency exchange works and how it moves.
No comments:
Post a Comment