Large open economy

Large open economy is an open economy that can influence its domestic interest rate; an economy that, by virtue of its size, can have a substantial impact on world markets and, in particular, on the world interest rate. (Cf. small open economy.)

Definition

According to Macroeconomics by Mankiw (7th edition),

Large open economy. An open economy that can influence its domestic interest rate; an economy that, by virtue of its size, can have a substantial impact on world markets and, in particular, on the world interest rate. (Cf. small open economy.)