Why did the EU countries move away from the EMS toward the goal of a single shared currency?Answer:To produce a greater degree of European market integration by removing the threat...

How were the initial members of EMU chosen? How will new members be admitted? What is the structure of the complex of financial and political institutions that govern economic poli...

“The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners.”A...

Discuss the benefits and costs of joining a fixed-exchange area.Answer:Benefits: in general, gains from the stability of the area and reduced uncertainty. The efficiency gain from ...

Discuss the problems that the EMU will face in the coming years.Answer: pages 631-632. (1) Europe is not an optimum currency area; therefore asymmetric economic developments within...

Using the GG – LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country’sAnswer: Such a change pushes LL upward and ...

Using the GG – LL framework, analyze the effect of Libya subsidizing the Pakistani NuclearAnswer: This will shift the GG curve upward and to the left causing the two countries to ...

资本边际效率：是一种贴现率，这种贴现率正好使资本物品的使用期内各项预期收益的现值之和等于这项资本物品的供给价格或重置价格。

GDP（国内生产总值）：一个经济社会中在一定时期内由所拥有的生产要素所生产的全部最终产品（物品和劳动）的市场价值。

流动性偏好陷阱：指当利率极低时,人们认为利率不大可能下降，债券价格不大可能享上升，人们不管有多少货币都愿意持有在手中的现象。

自动稳定器：亦称内在稳定器，是指经济系统本身存在的一种会减少各种干扰国民收人冲击的机制，能够在经济繁荣时期自动抑制通胀，在经济衰退时期自动减轻萧条,无需政府采取任何行动。

挤出效应：指政府支出的增加，使得利率上升，进而使得私人消费或投资降低的效应。