国际经济学(英文版)

Chapter 13 Balance of Payment

13.1 Introduction

International finance: examination of the monetary aspects of international economics

Balance of Payment: a summary statement in which all the transactions of the nation’s residents with the foreigners are recorded during a certain period.

Main purpose of BOP: inform the government of the international position of the nation; to help it in its monetary, fiscal and trade policies.

BOP traits: The BOP aggregates all the trades into a few categories

Only the net balance of each type of international capital flow is included

International transaction: Exchange of a good, service or assets between the residents of two nations. Gifts and certain transfers + International Transactions

People Concerning BOP: Diplomats, soldiers, tourists and workers belong to motherland

Corporation: motherland/ foreign branches: local

International institutions: nowhere

13.2 BOP Accounting Principles

Credit transactions: involve the receipt of payments from foreigners +

Exports, unilateral transfers and goods received, capital inflow

Capital inflow:

an increase in foreign assets in the nation/本国持有外国资产上升

a reduction in the nation’s assets abroad/本国在外资产减少

Debit transactions: involve the making of payments to the foreigners -

Imports, unilateral transfers or gifts paid, capital outflow

Capital Outflow:

an increase in the nation’s assets abroad

a reduction in foreign assets in the nation

Double-Entry Bookkeeping: each international transaction is recorded twice, once as a credit and once

as a debit of an equal amount.

5 Examples in Textbooks

13.3 The International Transactions of the USA

rounding.

The official reserve assets:

✓Gold holdings of monetary authorities黄金储备

✓Special Drawing Rights特别提款权(paper gold)

International reserves created on the books of the IMF and distributed to member nations according to

importance in international trade

✓The reserve position in the IMF在IMF的头寸

The reserves paid in by the nation on joining the IMF, which the nation can then borrow automatically and

without questions asked in case of need

✓The official foreign currency holdings of monetary authorities外汇储备

Statistical Discrepancy: This is required to make the total credits equal to the total debits, as required by

double-entry bookkeeping.

13.4 Accounting Balances and Disequilibrium in International Transactions

Autonomous transactions: transactions in current account + capital account

Take place for business or profit motives and independently of BOP

considerations

Items above the line

Current account:

All sales and purchases of currency produced goods and services, investment incomes, and unilateral transfers

Link between the nation’s international transactions and its national income

Current account surplus stimulates domestic production and income. Current account deficit

dampens domestic production and income.

Capital account:

The changes in US-owned assets abroad and foreign-owned assets in the US other than official reserve assets

Change in reserves reflects government policy rather than the market force.

Accommodating transactions: Transactions in official reserve assets

Items below the line

The accommodating items form the Official Reserve Account.

The balance on the official reserve account is called the Official Settlements Balance.

Deficit in the BOP:

The excess of debits over credits in the current and capital accounts

The excess of credits over debits in official reserve account

Surplus in the BOP:

The excess of debits over credits in official reserve account

The excess of credits over debits in the current and capital accounts