A Technical Note on the Open-Economy IS/LM Model Harvard Case Solution & Analysis

This technical note introduce the basic arrangement of what we call the Three-Paned Model. The model is basically just an "opening up" of the closed-economy IS/LM Model, with the main pane being the IS/LM Model (modified only slightly to allow for international trade) and two additional panes that establish the number of capital inflows, net exports, and the exchange rate.

This note is not a substitution for the more in-depth demonstration of these models found in textbooks, but should be used to harmonize the richer treatment of the technical and theoretical aspects of these models of each textbook.

PUBLICATION DATE: August 14, 2008 PRODUCT #: UV1111-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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