Post your 3 favorite margin notes from this chapter. Why did you highlight and comment on these particular points in the text? (I know some of you don’t take notes as you read – just jot down three things that you found interesting in the chapter and why.)
This chapter was one of my favorites because it was easy to follow, and it was very interesting. Some of the things I wrote on my notes were The Flow of Goods and how important they are for the economy. Never gave it much thought on how essential this is. Learning that for a better economy there has to be a balanced trade, you would think that whatever brings the more benefit is the better choice, in my case I thought exports were more beneficial. Net capital outflow was also interesting, like I said I never gave it a lot of thought to what was essential for a better economy. I would have not imagined that a negative outflow had to do with domestic residents buying less foreign assets than foreigners are buying domestic assets. I also loved reading about real exchange rates. If I had to read a chapter all over again, it would be this one to grasp more all the important information.
Netsy's Thoughts 