Elementos de teoría y política macroeconómica para una economía abierta. Tercera parte: Capítulos 9 y 10

The third part, which consists of four chapters, presents the Mundell-Fleming model; the model of aggregate supply and demand; expectations and contracts as determinants of aggregate supply; the Phillips curve, and the model incorporating the Monetary Policy Reaction Function. The ninth chapter analyses the determination of production in the medium term. Based on the equilibrium in the markets of goods and money, it adds an Aggregate Supply curve to the analysis of Aggregate Demand in an open economy with free capital mobility. The tenth chapter is a review of both the short and the long term, and of the differences of the economic policy effects in both time horizons. It also includes the concept of expectations in economic as a foundation of a new short term positively sloped Aggregate Supply curve. Finally, the chapter presents the contractions and expansions of output gaps, and the transition from short to long term equilibrium.