online review

This online review is identical to lecture 16 and revisits the history of international monetary orders from the gold standard in around 1880 to the present. The review presents the historic experience in light of the open-economy policy trilemma and shows in exercises how the qq-dd-xx model of international macroeconomics can be used to explain the historic experience.

The review has five parts: an introduction, a section on the gold standard, a section on the interwar period and the early bretton woods system, a section on the demise of the bretton woods system, and a section on the present-day international monetary system. In the latter four parts, there is a proposed exercise at the end of each model video, revisiting history with the qq-dd-xx model. There is also a solution video for each exercise.

Try the exercise yourself, watch the solution video only after the model video.

files for download and viewing

• Slides to download (Lecture 16, zipped and password protected pdf) [zip 180k]
  To find the four exercises in the slides, search for the word "Exercise"