国际金融 英文版 Chapter 2 总结
国际金融英文chapter 2
Chapter 2
Payments among Nations 国际收支
Balance of payments 国际收支平衡表
The set of accounts recording all flows of value between a nation’s residents and the residents of the rest of the world during a period of time. 一个国家的居民与非居民一定时期内的全部国 际经济交易。
Balanபைடு நூலகம்e of payments
The main kinds of flows in the balance of payments accounts
Merchandise trade flows Service flows Income flows Unilateral transfers (gifts) Private capital flows Official reserve asset flows
The Current Account (CA) Balance
3.Domestic production (Y) versus national expenditure (E). Y = C + Id + G +(X – M), E = C + Id + G, and CA = (X – M) approximately, so that CA = Y – E
国际金融中英文版答案)
国际金融中英文版Chapter 2:Payments among NationsSingle-Choice QuestionsA country’s balance of payments records: 一个国家的国际收支平衡记录了 BThe value of all exports of goods and services from that country for a period of time.All flows of value between that country’s residents and residents of the rest of the world during a period of time.在一定时间段里,一个国家居民的资产和其它世界居民资产的流动All flows of financial assets that cross that country’s borders during a p eriod of time.All flows of goods into that country during a period of time.A credit item in the balance of payments is: 在国际收支平衡里的贷项是AAn item for which the country must be paid.一个国家必须收取的条款An item for which the country must pay.Any imported item.An item that creates a monetary claim owed to a foreigner.Every international exchange of value is entered into the balance-of-payments accounts __________ time(s). 每一次国际等价交换都记进国际收支帐户２次B1234A debit item in the balance of payments is: 在国际收支平衡中的借项是BAn item for which the country must be paid.An item for which the country must pay.一个国家必须支付的条款Any exported item.An item that creates a monetary claim on a foreigner.In a nation's balance of payments, which one of the following items is always recorded as a positive entry? D在国际收支中,下列哪个项目总被视为有利条项Changes in foreign currency reserves.Imports of goods and services.Military foreign aid supplied to allied nations.Purchases by foreign travelers visiting the country.国外游客在本国发生的购买The sum of all of the debit items in the balance of payments: 在收支平衡中,所有贷项的总和 BEquals the overall balance.Equals the sum of all credit items.等于所有借项的总和Equals the sum of credit items minus errors and omissions.Which of the following capital transactions are entered as debits in the U.S. balance of payments? 下列哪个资本交易在美国的收支平衡中当作借项？ BA U.S. resident transfers $100 from his account at Credit Suisse in Basel (Switzerland) to his account at a San Francisco branch of Wells Fargo Bank.A French resident transfers $100 from his account at Wells Fargo Bank in San Francisco to his Credit Suisse account in Basel.一个法国居民在旧金山的Fargo Bank用其帐户转帐１００美金到位于巴塞尔的瑞士信贷户口A U.S. resident sells his IBM stock to a French resident.A U.S. resident sells his Credit Suisse stock to a French resident.An increase in a nation's financial liabilities to foreign residents is a: 一个国家对另一个国家金融负债的增加是一种CReserve inflow.Reserve outflow.Capital inflow.资本流入Capital outflow.___A_______ are money-like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them. 官方国际储备资产是一种类似于钱的资产，这种资产由政府掌握并作为政府间的一种支付手段得到充分认可.Official international reserve assets 官方国际储备资产Unofficial international reserve assetsOfficial domestic reserve assetsUnofficial domestic reserve assetsWhich of the following is considered a capital inflow? 下列哪项被视为资本流入 AA sale of U.S. financial assets to a foreign buyer.美国一金融资产卖给一外国买家A loan from a U.S. bank to a foreign borrower.A purchase of foreign financial assets by a U.S. buyer.A U.S. citizen’s repayment of a loan from a foreign bank.In a country’s balance of payments, which of the following transactions are debits?一个国家的收支平衡表中,哪个交易属于借项？ ADomestic bank balances owned by foreigners are decreased.外国人拥有的国内银行资产的下降Foreign bank balances owned by domestic residents are decreased.Assets owned by domestic residents are sold to nonresidents.Securities are sold by domestic residents to nonresidents.The role of ___D_______ is to d irect one nation’s savings into another nation’s investments: 资金流的作用是指导一个国家的储蓄进入到另一个国家的投资Merchandise trade flowsServices flowsCurrent account flowsCapital flows资金流Capital account.Current account.经常账目（户）Trade balance.Official reserve balance.The net value of flows of financial assets and similar claims (excluding official international reserve asset flows) is called the: 金融资产和类似的资产（官方国际储备资产流除外）的净值流叫AFinancial account.金融帐Current account.Trade balance.Official reserve balance.The financial account in the U.S. balance of payments includes: 美国国家收支表中的金融帐包括： BEverything in the current account.U.S. government payments to other countries for the use of military bases.美政府采用其它国家军事基地所需支付款项Profits that Nissan of America sends back to Japan.New U.S. investments in foreign countries.ＡU.S. resident increasing her holdings of a foreign financial asset causes a:一个美国居民增持一外国金融资产会引起DCredit in the U.S. current account.Debit in the U.S. current account.Credit in the U.S. capital account.Debit in the U.S. capital account.美国资本帐的借帐A foreign resident increasing her holdings of a U.S. financial asset causes a:一个美国居民增持本国一金融资产会引起 CCredit in the U.S. current account.Debit in the U.S. current account.Credit in the U.S. capital account.美国资本帐的贷帐Debit in the U.S. capital account.A deficit in the current account: 经常帐户中的赤字 ATends to cause a surplus in the financial account.会导致金融帐中的盈余Tends to cause a deficit in the financial account.Has no relationship to the financial account.Is the result of increasing exports and decreasing imports.In September, 2005, exports of goods from the U.S. decreased $3.3 billion to $73.4 billion, and imports of goods increased $3.8 billion to $144.5 billion. This increased the deficit in:20xx年8月,美国商品出口降低了33亿美元,共734亿美元；商品进口上升到1145亿美元,上长了38亿.这样增加了哪个方面的赤字？CThe balance of payments.The financial account.The current account.经常帐户Unilateral transfers.Which of the following would contribute to a U.S. current account surplus? 以下哪项有助于美国现金帐的盈余？ BThe United States makes a unilateral tariff reduction on imported goods.The United States cuts back on American military personnel stationed in Japan.美国削减在日本的军事人员U.S. tourists travel in large numbers to Asia.Which of the following transactions is recorded in the financial account?以下哪个交易会被当作金融帐AA Chinese businessman imports Ford automobiles from the United States.A U.S. tourist spends money on a trip to China.The New York Yankees are paid $10 million by the Chinese to play an exhibition game in Beijing, China.If a British business buys U.S. government securities, how will this be entered in the balance of payments? 如果一英国商人购买了美国政府的债券,那么这个交易在收支平衡表中会被当作是？ CIt will appear in the trade account as an import.It will appear in the trade account as an export.It will appear in the financial account as an increase in U.S. assets held by foreigners.会被当作是外国人所有的美国资产增长It will appear in the financial account as a decrease in U.S. assets held by foreigners.In the balance of payments, the statistical discrepancy or error term is used to: 在收支平衡表中, 统计差异与错误项目会用来确保借帐总和跟贷帐总和一致 AEnsure that the sum of all debits matches the sum of all credits.Ensure that imports equal the value of exports.Obtain an accurate account of a balance-of-payments deficit.Obtain an accurate account of a balance-of-payments surplus.Official reserve assets are: 官方储备资产是 BThe gold holdings in the nation’s central bank.Money like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them. 官方国际储备资产是一种类似于钱的资产，这种资产由政府掌握并作为政府间的一种支付手段得到充分认可Government T-bills and T-bonds.Government holdings of SDR’sGold.Special Drawing Rights.IMF Reserve Positions.Foreign Currencies.外汇（币）The net accumulation of foreign assets minus foreign liabilities is: 海外净资产的积累减去外债等于CNet official reserves.Net domestic investment.Net foreign investment.国外投资净值Net foreign deficit.A country experiencing a current account surplus: 一个国家经历经常帐户的盈余 BNeeds to borrow internationally.Is able to lend internationally.就有能力向外放贷Must also have had a surplus in its "overall" balance.The ___C_______ measures the sum of the current account balance plus the private capital account balance. 官方结算差额是指经常帐户余额的总和加上私人资本帐（B=CA+FA,FA:为非官方投资和储备）Official capital balanceUnofficial capital balanceOfficial settlements balance官方结算差额Unofficial settlements balanceIf the overall balance is in __A________, there is an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets. 如果综合差额处于盈余，那么会出现本国官方储备资产的积累或者国外官方储备的减少（B=CA+FA,B+OR=0，OR:官方储备金额）Surplus盈余DeficitBalanceForeign handsWhich of the following is the current account balance NOT equal to? 以下哪项不等同于现金帐 DThe difference between domestic product and domestic expenditure.The difference between national saving and domestic investment.Net foreign investment.The difference between government saving and government investment. 政府储蓄与政府投资的差值True/False QuestionsCapital inflows are debits and capital outflows are credits. 资金流入是借项，资金外流是贷项The net flow of financial assets and similar claims is the private current account balance. 金融资产和类似的资产的净值叫经常帐目余额The majority of countries' official reserves assets are now foreign exchange assets, financial assets denominated in a foreign currency that is readily acceptable in international transactions. (T)大部份官方储备资产作为以外汇资产和金融资产为命名的外币在世界上交易与流通.A country's financial account balance equals the country's net foreign investment.一个国家的金融帐差额相当于一个国家的净国外投资A country has a current account deficit if it is saving more than it is investing domestically.一个国家如果在国内的储蓄比投资要大,那么会出现经常账目赤字The official settlements balance measures the sum of the capital account balance plus the public current account balance. 官方结算差额是资金帐户余额的总额加上公共经常帐户余额A nation's international investment position shows its stock of international assets and liabilities at a moment in time. (T)一个国家的国际投资状况反映出它在特定时间里的国际资产股份以及债务情况.A nation is a borrower if its current account is in deficit during a time period. (T)在一段时间内,如果一个国家的经常帐出现赤字,那么它就是借方.A nation is a debtor if its net stock of foreign assets is positive. 如果一个国家的国外资产净储备是正数,那么它是借方（债务方）A transaction leading to a foreign resident increasing her holdings of a U.S. financial asset will be recorded as a debit on the U.S. financial account.如果一项交易引起一外国居民增持美国金融资产的股份,那么这项交易在美国金融帐中会被当作借项A credit item is an item for which a country must pay. 贷项是指一个国家必须还款的条项Gold is a major reserve asset that is currently often used in official reserve transactions. 黄金作为主要的储备资产,常被用在官方储备交易当中.The current account balance is equal to the difference between domestic product and national expenditure.(T)经常项目余额等于国民生产与国民支出的差额In 2007 U.S. households, businesses and government were buying more goods and services than they were producing.(T)____年,美国家庭,商业,政府购买的商品和服务比他们生产（商品和服务）的要多.6。
金融英语chapter two Central Bank
vi. 暗含，暗示（与of 连用时）
rationalise
vt. 阐释
dysfunctional
adj. 运转不良的
transmit vt. 传播，传导
stance
n. 立场，观点
veto
n. 否决权
prod
vt. 促使
10
Phrases
take aback
使吃惊，使吓一跳
例句： Your request took me aback. 你的要求使我大吃一惊。
Modern monetary policy has four key goals. The first and most important is the stability in the price level. Zero inflation is not good for economic growth, while hyperinflation can destroy a nation’s economy and has a devastating impact on people’s life. Today price stability means maintaining a sustained but mild rate of inflation. The second goal is high employment. But it’s impossible to eliminate frictional unemployment and zero unemployment rate is not necessarily
Key: D
5
Background knowledge Brief Introduction to Central Banks
金融英语chapter2
Fundamental functions:
• 1.
as banks for the government and for other banks. • 2. monetary policy - either the government's, as in Britain, or their own, if they are independent, as in Germany and the USA. • 3. the money supply. • 4. Fix the minimum interest rate.
Translation
• 储备银行试图在减缓市场冲击力方面
发挥作用，对外汇市场不时进行干预， 目的是要限制它更剧烈的动荡。
Central bank and commercial bank
Commercial banks have to keep a certain amount of their deposits to the central bank. When Commercial banks meet a bank run, central banks act as lender of last resort, but central banks don’t always bail out（ rescue banks in difficulty). Reserve-asset ratio: the minimum percentage of its deposits a bank has to keep in the central bank A bank run= a run on the bank
Riksbank in Sweden (1668)
国际金融(英文版第二版)Chapter 2 Theories of Balance of Payment
Transforming equation (2.2) into difference form yields:
dCA=dY-dA (2.3)
Thus the change in total absorption, dA, is given by:
dA=adY+dAd (2.4)
Chapter 2 Theories of bala
2.1 The elasticity approach to the balance of payments
This
approach provides an analysis of what happens to the current account balance when the country devalues its currency. The central message of the elasticity approach is that there are two direct effects of a devaluation on the current balance.
Taking the equation for national income:
Y=C+I+G+X-M (2.1)
2.2 The absorption approach to the balance of payments And defining domestic absorption as A=C+I+G, then we can get:
Figure 2.2 The money supply and reserves
Monetarists observe that the overall balance of payments can be thought of as consisting of the current account balance, the capital account balance, and change in the authorities’ reserves. That is: BP=CA+K=dR=0 So that:
国际金融英文版ChapterTwo
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国际金融英文版ChapterTwo
重要说明
偏差
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国际金融英文版ChapterTwo
此研究方法给我们的启发
³ 我国能源的短缺
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国际金融英文版ChapterTwo
结束句
谢谢
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国际金融英文版ChapterTwo
Fundamentals of BOP Accounting
New York bank deposits.
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国际金融英文版ChapterTwo
Fundamentals of BOP Accounting
3. How do we record transactions between residents and nonresidents
A set of accounts(p14-18)
³ Each transaction, involves two opposite flows of equal value. ³ For example: ³ The U.S. government sells $29 million worth of wheat to Russia, being paid
Debit: unilateral transfer $8 million
Credit: goods
$8 million
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国际金融英文版ChapterTwo
Account name
Debit
Current account
67
Goods
34(2)
Services
Income
25(4)
•Financia l account
国际金融Chapter Two
• A debit (-) is a flow for which the country must pay. Such as : • The country’s imports of goods; • Purchases by firms in this country of consulting services from providers located in foreign countries; • Purchases by investors in this country of the equity shares of a foreign company from the foreigner that previously owned the shares. • In each of these cases is obligated to make a payment to a foreigner.
The U.S. government simply gives $8 million in foreign aid to the government of Egypt in the form of wheat from U.S. government stockpiles.
• Credit(+) Debit(-) • Merchandise export $8 • Unilateral transfer to Egypt $8
• The $ 8 million credit is straightforward since this is just another merchandise export, for which the United States must be paid. • The accountants get around the fact that the United States was not paid by Egypt by inventing a debit item for the unilateral transfer (gift) to Egypt. They invent the fiction that the United States received $ 8 million in goodwill- or gratitude- from Egypt for its gift of wheat.
国际金融第2章
Chapter Two
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Prof. Xiaojing Chen
The resultant change in relative price levels will slow exports from Great Britain and encourage exports from France.
2-10
Interwar Period: 1915-1944
2-12
Bretton Woods System: 1945-1972
British pound German mark
Par Value
French franc
• The U.S. dollar was pegged to gold at $35 /ounce and other currencies were pegged to the U.S. dollar.
2-4
Bimetallism: Before 1875
Bimetallism was a “double standard” in the sense that both gold and silver were used as money. Some countries were on the gold standard, some on the silver standard, and some on both. Both gold and silver were used as an international means of payment, and the exchange rates among currencies were determined by either their gold or silver contents.
金融英语Chapter2
• In addition, the market values of securities (such as bonds) held by depository institutions or nondepository institutions are affected as well. Thus, managers of financial institutions attempt to anticipate interest rate movements so that they can capitalize on favorable movements or reduce their institution’s exposure to unfaverable movements.
❖For example, if tax rates on household income are expected to significantly decrease in the future, households might believe that they can more easily afford future loan repayment and thus be willing to borrow more funds. For any interest rate, the quantity of loanable funds demanded by households would be greater as a result of tax law adjustment. This represents an outward shift in the demand schedule.
国际金融知识点总结 英文
国际金融知识点总结英文International finance is a branch of economics that deals with the management of an individual's or a company's assets in an international financial setting. It involves the study of how various international entities, such as governments, corporations, and individuals, interact and conduct business in the world of finance. Understanding the key concepts and knowledge points of international finance is crucial for making sound financial decisions in the global economy. In this article, we will discuss some of the essential knowledge points in international finance.Foreign Exchange MarketThe foreign exchange market, also known as the forex market, is the global marketplace for trading currencies. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $6 trillion. The forex market facilitates the exchange of one currency for another and plays a vital role in the international trade and investment. Understanding the foreign exchange market is essential for businesses and investors to manage currency risk and make informed decisions on foreign exchange transactions.Exchange RatesExchange rates are the prices at which one currency can be exchanged for another. They are determined by the forces of supply and demand in the foreign exchange market and are influenced by various factors, such as interest rates, inflation, and geopolitical events. Exchange rates can have a significant impact on international trade, investment, and economic growth. It is crucial for businesses and investors to monitor and analyze exchange rate movements to mitigate currency risk and maximize their profits in the global marketplace.Foreign Direct Investment (FDI)Foreign direct investment is a form of cross-border investment in which a company invests in a foreign country by establishing a subsidiary, acquiring a stake in a foreign company, or starting a joint venture with a local partner. FDI plays a vital role in the global economy by promoting economic growth, creating jobs, and transferring technology and know-how. Understanding the benefits and risks of FDI is crucial for both multinational corporations and host countries to make informed investment decisions and maximize the mutual benefits of foreign investment.International Trade FinanceInternational trade finance refers to the financial instruments and services that facilitate international trade, such as letters of credit, trade finance loans, and export credit insurance. It plays a crucial role in supporting cross-border trade by providing the necessary financing and risk mitigation tools for exporters and importers. Understanding the various trade finance instruments and services is essential for businesses to manage the financial aspectsof their international trade transactions and mitigate the risks associated with cross-border trade.International Monetary SystemThe international monetary system is the framework of rules, institutions, and agreements that govern the exchange rate regimes, currency convertibility, and international monetary transactions. It has evolved over time from the gold standard to the Bretton Woods system and the current floating exchange rate system. Understanding the international monetary system is essential for policymakers, central banks, and businesses to navigate the complexities of the global financial system and manage the implications of international monetary developments on their operations and investments.Global Capital MarketsGlobal capital markets are the financial markets in which long-term debt and equity securities are issued and traded by companies, governments, and other financial institutions. They provide a crucial source of financing for businesses and governments, allowing them to raise capital for investment and growth. Understanding the global capital markets is essential for companies and investors to access the necessary funding, manage their investment portfolios, and make informed decisions on capital raising and investment opportunities in the global financial markets.International Financial InstitutionsInternational financial institutions, such as the International Monetary Fund (IMF), the World Bank, and regional development banks, play a vital role in promoting global financial stability, economic development, and poverty reduction. They provide financial assistance, policy advice, and technical assistance to their member countries to address balance of payments problems, support infrastructure development, and promote sustainable economic growth. Understanding the functions and activities of international financial institutions is crucial for governments, businesses, and civil society organizations to engage with them effectively and leverage their resources for development projects and initiatives. International Financial RegulationInternational financial regulation refers to the rules, standards, and guidelines that govern the activities of financial institutions and markets in the global economy. It aims to promote financial stability, protect investors, and prevent financial crises by setting prudential standards, conducting supervision and monitoring, and coordinating cross-border regulatory cooperation. Understanding international financial regulation is essential for policymakers, financial institutions, and investors to comply with the regulatory requirements, manage regulatory risks, and contribute to the stability and integrity of the global financial system.ConclusionIn conclusion, international finance encompasses a wide range of knowledge points that are essential for understanding the complexities of the global financial system and making informed financial decisions in the international marketplace. Foreign exchange market, exchange rates, foreign direct investment, international trade finance, international monetary system, global capital markets, international financial institutions, and international financial regulation are some of the key concepts and knowledge points in international finance. By understanding these concepts and knowledge points, businesses, investors, and policymakers can navigate the challenges and opportunities of the global economy and contribute to the growth and development of the international financial system.。
国际金融 chapter 2 国际收支平衡表
Balance of Payments Accounting
The Balance of Payments is the statistical record of a coun try’s international transactions over a certain period of ti me presented in the form of double-entry bookkeeping. 以复式记账的形式对一个国家在某一时期的国际经济 交易所做的统计记录。 When we say “a country’s balance of payments” we are re ferring to the transactions of its citizens and government. 当我们提到“一国的国际收支平衡”是，主要是针对这 个国家的人和政府的交易而言的。
Chapter two international balance of payment
北京工业大学耿丹学院吴巍巍
Chaves to introduce the balance of payments including how it is constructed and how balance of payme nts data may be interpreted. 这一章主要介绍国际收支平衡表，包括国际收支的构 成和对国际收支的解读。分析国际收支失衡的原因及 对策。
Balance of Payments Example
Suppose that company A from USA imports $100,000 worth of bicycl e frames fromcompany B in England. 假设美国A 自行车公司从英国 B自行车公司进口了价值10万美元 的自行车车架。
金融英语课件 chapter 2资料文档
An example
Options
• A right, not an obligation
• Exercise price • Cost (premium) • Spot market price
• European • American
Options
Options
• In the money • Out-of the money
• Financial assets whose values depend on the values of other assets, such as stocks or bonds. (underlying assets)
Derivatives
• Forward • Futures • Options • And swaps
• voting right --- CS • get paid a guaranteed dividend at a pre-
determined interest rate ---PS • priority distribution of the company's assets
Derivatives
disadvantages of issuing C.S
• Dilution of ownership • More new shareholders share profit • More costly • Dividends are not tax deductible
Comparison of PS and CS
China cuts rates, lowers reserve
ratio
• The 1 percentage point cut from the reserve requirement ratio of 17.5 percent does not apply to the five biggest banks (the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, the Bank of Communications) and the Postal Savings Bank, the People's Bank of China (PBOC) said on its website.
金融英语 chapter_2
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9
Measuring Money
Changes in the amount of money in the economy are related to changes in interest rates, economic growth, and most important, inflation. Inflation is a sustained rise in the general price level—that is, the price of everything goes up more or less at the same time. Inflation makes money less valuable, and the primary cause of inflation is the issuance of too much money.
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The time spent trying to exchange goods and services is called a transaction cost. In a barter economy, transaction costs are high because people have to satisfy a “double coincidence of wants”—they have to find someone who has a good or service they want and who also wants the good or service they have to offer. The use of money as a medium of exchange promotes efficiency by eliminating much of the time spent in exchanging goods and services. Money is therefore essential in an economy: it is a lubricant that allows the economy to run more smoothly by lowering transaction costs, thereby encouraging specialization and the division of labor.
国际金融英文版---Chapter 2
a government or a foreign
official lending and
en p157 for more details
International Lending and Financial Crises
International capital flows can bring two types of benefits.
Chapter 7
International
Lending and Financial Crises
International Lending and Financial Crises
An analysis of the benefits of international lending and borrowing.
Financial crises
– Why did many financial crises occur? – How can we resolve them? – What might we be able to do to make them less
frequent?
International Lending and Financial Crises
International Lending and Financial
Crises
International capital flows can bring two types of benefits.
International lending to developing countries: the debt crisis of 1982
Long term
loans
exchange rate risk.
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Chapter twoPayments among nationsBalance of payments国际收支平衡表---the set of accounts recording all flows of value between a nation’s residents and the residents of the rest of the world during a period of time.>>show a wealth of information about a country’s international activities一、Accounting principles1. A credit item(+)---an item for which the country must be paid.Examples: exports, purchases by foreign tourists, foreign investing ingovernment bonds2. A debit item(-)---an item for which the country must pay.(import)Examples: import, purchases by firms in foreign countries, purchasesby investors of foreign shares3.Double-entry bookkeeping复式簿记---fundamental accountingprinciple.4.Double-entry bookkeeping’s key implication: if we add up all thepositive items (credits) and all the negative items (debits)in a country’sbalance of payment, the total will be zero.5.Surplus---positive balance6.Deficit---negative balance二、A country’s balance of payments◆Current account---includes all debit and credit items that are exports and imports of goods and services, income receipts and income payments, and gifts.1.Exports and imports of goods(merchandise) and servicesServices: tourism, national trade transportation, insurance, education,financial, technical, telecommunications, brand names.2.Goods and services balance、trade balance、Goods/merchandise tradebalance ---all items for exports and imports of goods and services3.Income flows---payments to holders of foreign financial assetsInclude: interest, dividends, other claims on profits, payments toforeign workers (short time stay)4.Unilateral transfers---items that keeps track of gifts that the countrymakes and gifts that it receives; private transfer(international migrant s’remittances of money and goods back to their families in home country；charitable giving)5.Current account balance◆Financial account1.Financial account balance/financial account---net value of flows offinancial assets and similar claims(excluding official internationalreserve asset flows)2.the values in financial account are for the principal amounts本金forassets traded. While any flows of earnings on foreign assets are incurrent account.3.Exporting financial assets/capital imports (+)4.Importing financial assets/capital exports(-)5.Foreign direct investment---any flow of lending to, or purchases ofownership in, a foreign enterprise that is largely owned and controlledby the entity(usually a multinational enterprise) doing this lending ofinvesting.6.Indirect foreign investments include: international flows ofsecurities(bonds and stocks), loan, bank deposits.7.International portfolio investment---investor does not own a largeshare of the enterprise being invested in, but as a part of a diversifiedportfolio. eg: bond or stock◆Official international reserves---money-like assets that are held bygovernments and that are recognized by governments as fully acceptable for payments between them.1.Gold2.Foreign exchange assets3.Claims债权a country has on IMF: reserve position储备头寸4.SDRs---special drawings rights---reserve asset created by IMF◆Statistical discrepancy---net result of errors and omissions on both thecredit and debit sides.1.For US: undermeasurement of private capital flows2.For the world: tendency to underreport merchandise imports, incomereceipts(特别是investment incomes), capital exports.>>people succeedin hiding imports, foreign investment incomes, capital flight from owngovernment officials.三、The macro meaning of the current account balance1.Current account balance:1)current account balance/CA= net foreign investment/I f2)current account surplus= net foreign investment positive>>net lender净债权国3)current account deficit= net foreign investment negative>>net borrower净债务国4)national saving(S)=I d+I f>>I f =S-I d>>CA= S-I d5)Domestic production (Y) = C + I d + G +(X – M)National expenditure (E) = C + I d + GY=E+(X-M),so that CA = (X – M) approximatelyCA = Y – EMeaning of a current account surplus:•The country has positive net foreign investment (a net lender)•The country is saving more than it is investing domestically.•The country is producing more than it is spending on goods and services. 2、四、The macro meaning of the overall balance1.overall balance---whether balance of payment has achieved an overallpattern that is sustainable over time一定时期内2.indicator:I f=FA/financial account balance+OR/net flows of official reserve assetsOfficial settlements balance/B=CA+FAB+OR=03.Economic Meaning of Overall BalanceIf B is in surplus, there is an accumulation of OR (debit in OR)—the monetary authorities buy foreign currencies.Vice versaAmerica in 2007 vs. China in 2007五、The international investment position1.International investment position---statement of the stocks of a nation’sinternational assets and foreign liabilities at a point in time (end of a year) 2.Lender or borrower: depend on whether its current account is in surplus ordeficit一段时期流量3.Creditor or debtor: depend on whether its net stock of foreign assets ispositive or negative某一时点存量4.U.S. International Investment Position。