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The 3P Model

Warnock, Frank

Technical Note

The 3P Model

Warnock, Frank

GEM-0209 | Published February 29, 2024 | 12 pages Technical Note

Collection: Darden School of Business

Product Details

This note presents an open-economy macroeconomic model with three panes: IS/LM, international capital flows, and the exchange rate and net exports. It also includes extensions: full employment and the evolution of prices, fixed exchange rates, and FX intervention. This note is appropriate for use in a first-year MBA course that deals with international economics.

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