Part 15, Ch.17: Openness in Goods and Financial Markets 1. Relationship between I and S in an open economy. 2. Determinants of exports and imports, absorption, I and S 3. Determinants of trade balance using investment-saving and absorption approach. 4. Nominal and real exchange rates, definitions. 5. Balance of Payments. The Uncovered Interest Parity. Part 16, Ch.18: The Open Economy 1. The Goods market, Money market, the FX market and the Balance of Payments (BOP). 2. IS relation in the open economy (and the Keynesian cross in open economy), equilibrium in goods and money markets (show the effects of changes in real exchange rate, foreign income, fiscal policy, monetary policy). 3. Fiscal and monetary policy in an open economy with perfect capital mobility and flexible exchange rates. 4. Depreciation, trade balance and output. 5. Effects of fiscal and monetary policies on trade balance and exchange rates.

briefly give some definition of it

Olivier Blanchard, Macroeconomics, Prentice Hall, 8th, 2020.