Discuss why there is significant debate about what U.S. international goals should be.
Describe the paths through which monetary policy affects the trade balance.
Explain the paths through which fiscal policy affects the trade balance.
Summarize the reasons why governments try to coordinate their monetary and fiscal policies.
State the potential problem of internationalizing a country’s debt.
Explain how restoring U.S. competitiveness will likely affect U.S. policy in the future.
State some comparative statistics on rich and poor countries.
Differentiate the normative goals of developing and developed countries
Explain why economies at different stages in development have different institutional needs.
Explain what is meant by “the dual economy”.
Distinguish between a regime change and a policy change.
Explain why the statement that inflation is a problem of the central bank issuing too much money is not sufficient for developing and transitional countries.
Distinguish various types of convertibility.
Explain the “borrowing circle” concept and why it was successful.