Department of Economics
Prof. Carlos A. Vegh
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.
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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.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
o 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
Chapter 5: The basic
monetary model
Chapter 6: The monetary approach to the balance of
payments
Chapter 7: Temporary policy
o Matlab programs for predetermined
exchange rates economy (dynerbsflexprices.m;
patherbsflexprices.m;
plotimperbsflexprices.m)
o Matlab programs for flexible
exchange rates economy (dynflexiblerates.m;
pathflexiblerates.m;
plotimpflexiblerates.m)
Chapter 8: Sticky prices
Chapter 9: Interest rate policy
Chapter 10:
Optimal fiscal and monetary policy
Chapter 11: Optimal exchange rate regimes (preliminary draft)
o Mathematica program on sticky prices model
Chapter 12:
Real anchors
Chapter 13: Inflation stabilization
o Matlab programs for CIA, sticky-prices, predetermined exchange rates model (dynerbs.m, patherbs.m, plotimperbs.m)
Chapter 14: Capital
inflows
Chapter 15: Dollarization
Chapter 16: Balance
of payment crises
Chapter 17: Financial
crises
Answer keys for exercises at the end of chapters
If you have problems
downloading any of these files, please e-mail me at vegh@econ.umd.edu