MANUSCRIPT ON OPEN MACRO IN DEVELOPING COUNTRIES

This website contains preliminary drafts of chapters of a graduate textbook titled “Open Economy Macroeconomics in Developing Countries” (to be published by MIT Press) that I am currently preparing. Any citations to individual chapters should mention that they are part of the manuscript under preparation mentioned above. Comments/suggestions/corrections are extremely welcome and actively sought.

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NOTE TO PROFESSORS/INSTRUCTORS: If you are using any chapters of this book for your course, I would greatly appreciate your e-mailing me a copy of your syllabus (vegh@econ.bsos.umd.edu). As I revise, expand, and complete chapters, I find it extremely useful to have an idea of the context in which the book is used. Thank you.

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Part I: Real building blocks

· Chapter 1: The basic intertemporal model

· Matlab programs for endowment economy (dynendowment.m; mdrendowment.m; implendowment.m; pathendowment.m; plotimpendowment.m)

· Chapter 2: Capital markets imperfections

· Chapter 3: Intertemporal distortions

· Chapter 4: Non-traded goods and relative prices

Part II: Monetary building blocks

· Chapter 5: The basic monetary model (preliminary draft)

· Chapter 6: The monetary approach to the balance of payments (preliminary draft)

· Chapter 7: Temporary policy (preliminary draft)

· Matlab programs for predetermined exchange rates economy (dynerbsflexprices.m; patherbsflexprices.m; plotimperbsflexprices.m)

· Matlab programs for flexible exchange rates economy (dynflexiblerates.m; pathflexiblerates.m; plotimpflexiblerates.m; suplabel.m). (You need to have the suplabel file in your directory to generate one of the pictures in plotimpflexiblerates.)

· Chapter 8: Sticky prices (preliminary draft)

Part III: Macroeconomic policy

· Chapter 9: Interest rate policy (chapter available)

· Chapter 10: Optimal fiscal policy (preliminary draft)

· Chapter 11: Optimal monetary policy

· Chapter 12: Optimal exchange rate regimes (preliminary draft)

· Mathematica program on sticky prices model

· Chapter 13: Real anchors

Part IV: Applications

· Chapter 14: Inflation stabilization (working draft available upon request)

· Matlab programs for CIA, sticky-prices, predetermined exchange rates model (dynerbs.m; patherbs.m; plotimperbs.m)

· Matlab programs for sticky-prices, flexible exchange rates model (dynmbs.m; mdrmbs.m; implmbs.m; plotimp.m)

· Chapter 15: Capital inflows

· Chapter 16: Dollarization

· Chapter 17: Balance of payment crises (chapter available as old Chapter 9)

· Chapter 18: Financial crises

Chapters are constantly being revised, so please check for new versions.

Answer keys for exercises at the end of chapters (please e-mail me at vegh@econ.bsos.umd.edu to request answer keys).

· Answer key to Chapter 1 (available upon request)

· Answer key to Chapter 2 (available upon request)

· Answer key to Chapter 3 (available upon request)

· Answer key to Chapter 4 (available upon request)

· Answer key to Chapter 5 (available upon request)

· Answer key to Chapter 6 (available upon request)

· Answer key to Chapter 7 (available upon request)

· Answer key to Chapter 8 (available upon request)

If you have problems downloading any of these files, please e-mail me at vegh@econ.bsos.umd.edu

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