Publisher's Synopsis
The Open Market Economy is an in-depth analysis of gross domestic product (GDP), unemployment and economic growth. It introduces a model of the economic system of a country with an open market economy, examines the factors that determine GDP, explains how unemployment arises and discusses the conditions under which an economy grows, proposing thereby a theory that combines macroeconomics and economic growth. It also looks at policies that could be used to ensure long-term economic growth and minimise unemployment level. The Open Market Economy introduces some new concepts and theories such as the force of convergence and the theory of exchange rate. Surprisingly, the book concludes that high productivity, high literacy rate, quality products and good infrastructures are signs, not the causes, of rapid economic development and high growth rates. The long term economic performance of a country depends almost entirely on the state of its currency. When its currency is undervalued, the country enjoys good economic performance; but when its currency is overvalued, the country suffers from poor economic performance.
