APMac Unit 6 Lesson 5 Real Interest Rates and International Capital Flows by jclerch https://padlet.com/jclerch/qe8wgw0796hv Open Economy - International Trade and Finance en-us 2019-07-23 23:56:49 UTC 2026-02-21 22:09:26 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/d9b209946b2f19677ad657e88b9f6ac3/IMG_12291.png jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/372297429 There is no Quizlet for this lesson. 

]]> 2019-07-25 16:37:19 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/372297429 Essential Knowledge jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/372388379 In an open economy, differences in real interest rates across countries change the relative values of domestic and foreign assets. Financial capital will flow toward the country with the relatively higher interest rate.

Central banks can influence the domestic interest rate in the short run, which in turn will affect net capital inflows.
]]> 2019-07-26 14:02:03 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/372388379 Enduring Understanding jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/372388439 The interaction of buyers and sellers exchanging the currency of one country for the currency of another determines the equilibrium exchange rate in a flexible exchange market and influences the flow of goods, services, and financial capital between countries.]]> 2019-07-26 14:02:43 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/372388439 Learning Objectives jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/372388541 Explain (using graphs as appropriate) how differences in real interest rates across countries affect financial capital flows, foreign exchange markets, and loanable funds markets.]]> 2019-07-26 14:02:56 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/372388541 Questions jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/372392248
  • Can you explain how expansionary monetary policy affect the money market, the loanable funds market, and from there how it affects international capital flow? 
  • What effect does inflation have on capital flows (in general)? Why? 

    • ]]>     2019-07-26 14:48:33 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/372392248     The Blurry Frontiers of Economic Policy jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/372392603 2019-07-26 14:54:05 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/372392603 jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/480018221 2020-03-28 23:30:34 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/480018221 Lesson Introduction jclerch https://padlet.com/jclerch/qe8wgw0796hv/wish/1305887644 2021-03-13 19:57:24 UTC https://padlet.com/jclerch/qe8wgw0796hv/wish/1305887644