宏观经济学课件Chapter_12.ppt

12-1
Chapter 12
International Linkages
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McGraw-Hill/Irwin Macroeconomics, 10e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reser1v2ed-.2
• Similarly, if a country runs a deficit in its current account the deficit needs to be financed by selling assets or by borrowing abroad
• Selling/borrowing implies the country is running a capital account surplus any current account deficit if of necessity financed by an offsetting capital inflow:
➢ Some goods that are consumed or invested at home are produced abroad and imported a leakage from the circular flow of income
2. Finance
• U.S. residents can hold U.S. assets OR assets in foreign countries
1. Trade in goods and services
• A trade linkage:
➢ Some of a country’s production is exported to foreign countries increase demand for domestically produced goods
➢ When the U.S. moves into a recession, it tends to pull down other economies
➢ When the U.S. is in an expansion, it tends to stimulate other economies
➢ Portfolio managers shop the world for the most attractive yields ➢ As international investors shift their assets around the world, they link assets
markets here and abroad affect income, exchange rates, and the ability of monetary policy to affect interest rates
Introduction
• National economies are becoming more closely interrelated
• Economic influences from abroad have affects on the U.S. economy
• Economic occurrences and policies in the U.S. affect economies abroad
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• Two main accounts:
➢ Current account: records trade in goods and services, as well as transfer payments
➢ Capital account: records purchases and sales of assets, such as stocks, bonds, and land
• The central point of international payments is very simple: Individuals and firms have to pay for what they buy abroad
• If a person spends more than her income, her deficit needs to be financed by selling assets or by borrowing
Current account + Capital account = 0 (1)
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ExchangeBiblioteka Rates• Exchange rate is the price of one currency in terms of another
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The Balance of Payments and Exchange Rates
• Balance of payments: the record of the transactions of the residents of a country with the rest of the world
Any transaction that gives rise to a payment by a country’s residents is
a deficit item in that country’s balance of payments.
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External Accounts Must Balance
• In this chapter we present the key linkages among open economies and introduce some first pieces of analysis
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Introduction
• Economies are linked through two broad channels