Principles of Macroeconomics :3

1. 11 THE MACROECONOMICS OF OPEN ECONOMIES

2. 31 Open-Economy Macroeconomics: Basic Concepts

11. Figure 1 The Internationalization of the U.S. Economy Percent of GDP 0 5 10 15 1950 1955 1960 1965 1970 1975 1980 1990 1985 2000 1995 Exports Imports Copyright © 2004 South-Western

18. Figure 2 National Saving, Domestic Investment, and Net Foreign Investment Percent of GDP 20 18 16 14 12 10 1960 1965 1995 1990 1985 1980 1975 1970 (a) National Saving and Domestic Investment (as a percentage of GDP) 2000 Copyright © 2004 South-Western Domestic investment National saving

19. Figure 2 National Saving, Domestic Investment, and Net Foreign Investment Percent of GDP 4 – 4 – 3 – 2 – 1 0 1 2 3 (b) Net Capital Outflow (as a percentage of GDP) 1960 1965 1995 1990 1985 1980 1975 1970 2000 Copyright © 2004 South-Western Net capital outflow

40. Figure 3 Money, Prices, and the Nominal Exchange Rate During the German Hyperinflation 10,000,000,000 1,000,000,000,000,000 100,000 1 .00001 .0000000001 1921 1922 1923 1924 Exchange rate Money supply Price level 1925 Indexes (Jan. 1921 5 100) Copyright © 2004 South-Western