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    Pdfur L 0 Sureohp VHW 5 FRQVXPSWLRQ DQG WKH G - QDPLFV Ri D Vpdoo RSHQ HFRQRP

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    keyyongpark
    This document contains multiple problems related to open economy macroeconomics and intertemporal budget constraints. The first problem asks to show that under a policy where a country runs a trade surplus sufficient to repay a constant small fraction of interest each period, net foreign assets follow a linear equation. The second problem considers a linear-quadratic stochastic consumption model and shows how consumption innovations relate to changes in expected future output levels. The third problem examines how consumption responds in a nonstationary output process.

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    Pdfur L 0 Sureohp VHW 5 FRQVXPSWLRQ DQG WKH G - QDPLFV Ri D Vpdoo RSHQ HFRQRP

    Uploaded by

    keyyongpark
    5 views3 pages
    This document contains multiple problems related to open economy macroeconomics and intertemporal budget constraints. The first problem asks to show that under a policy where a country runs a trade surplus sufficient to repay a constant small fraction of interest each period, net foreign assets follow a linear equation. The second problem considers a linear-quadratic stochastic consumption model and shows how consumption innovations relate to changes in expected future output levels. The third problem examines how consumption responds in a nonstationary output process.

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    This document contains multiple problems related to open economy macroeconomics and intertemporal budget constraints. The first problem asks to show that under a policy where a country runs a trade surplus sufficient to repay a constant small fraction of interest each period, net foreign assets follow a linear equation. The second problem considers a linear-quadratic stochastic consumption model and shows how consumption innovations relate to changes in expected future output levels. The third problem examines how consumption responds in a nonstationary output process.

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    5 views3 pages

    Pdfur L 0 Sureohp VHW 5 FRQVXPSWLRQ DQG WKH G - QDPLFV Ri D Vpdoo RSHQ HFRQRP

    Uploaded by

    keyyongpark
    This document contains multiple problems related to open economy macroeconomics and intertemporal budget constraints. The first problem asks to show that under a policy where a country runs a trade surplus sufficient to repay a constant small fraction of interest each period, net foreign assets follow a linear equation. The second problem considers a linear-quadratic stochastic consumption model and shows how consumption innovations relate to changes in expected future output levels. The third problem examines how consumption responds in a nonstationary output process.

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