Large open economy
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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.)
