Salvatore chapters for DSE
chap-15....PPP, interest parity and dornbusch overshooting model (leave appendix)
chap-16...ML condition and J curve with appendix
chap-17...Income determination, import function and foreign trade multipliers
chap-18...expenditure changing and switching policies, IS-LM-BP model with fixed and flexible exchange rates
(also refer International finance by maurice levi for IS-LM-BP model as mentioned in study guide for more clarification)
chap-19 AD-AS in open economy and policy
note that these are strictly optional........the neccessary ones are already mentioned in study guide
u shud also no how to derive the ML condition ,i.e, elasticities of exports and imports w.r.t. exchange rates whether foreign/domestic or domestic/foreign.
Akshay Jain
Masters in Economics
Delhi School of Economics
2013-15