Table of contents Chapter 12 Notes on EViews version Notation Copyright Comments Guestbook
Model OPENFIX - Model OPENFIXR - Model OPENFIXG - Model OPENFLEX
Chapter 12 extends model OPEN from Chapter 6, allowing for trade in financial assets,
accumulation of foreign reserves, and different exchange rate regimes.
Model OPENFIX is a first version of a fixed exchange rate regime, with endogenous foreign reserves.
Download: gl12openfix (Eviews 5 to 8) or gl12openfix_v4 (Eviews 4.1)
Download the macro above to generate a baseline solution, and run the first experiment: an increase in the US propensity to import.
In model OPENFIXR the interest rate of one of the two countries is made endogenous.
Download: gl12openfixr (Eviews 5 to 8) or gl12openfixr_v4 (Eviews 4.1)
Download the macro above to generate a baseline solution, and run the second experiment: an increase in the UK propensity to import.
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In model OPENFIXG the interest rates are again both exogenous, as in model OPENFIX, but one of the countries adjust its government expenditure to offset shocks to its trade balance.
Download: gl12openfixg (Eviews 5 to 8) or gl12openfixg_v4 (Eviews 4.1)
Download the macro above to generate a baseline solution, and run the third and fourth experiments: an increase in the US propensity to import, and an increase in the propensity to import offset by a devaluation.
Model OPENFLEX has flexible exchange rates.
Download: gl12openflex (Eviews 5 to 8) or gl12openflex_v4 (Eviews 4.1)
Download the macro above to generate a baseline solution, and run the fifth, sixth and seventh experiments: a decrease in the UK propensity to export, an incrase in UK real government expenditure and an increase in the desire to hold US government bills.
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