第五章国际收支与国际联系(国际财务管理,JosephFGre

1. Beginning identity
NI - NS = X - M
(5.4)
where X = exports
M = imports
X-M=current account balance (CA)
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
2. Double-entry bookkeeping a. Currency inflows = credits earn foreign exchange b. Currency outflows = debits expend foreign exchange
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
d. Solutions for Improving CA deficits: 1.) Raise national income (output) relative to domestic investment (I). 2.) Increase (S) relative to domestic investment (I).
2. Combining (5.3) + (5.4)
S-I=X-M
(5.5)
3. If S - I = Net Foreign Investment (NFI)
NFI = X - M
(5.6)
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
NS = C + I
(5.2)
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
c. Subtracting (4.2) - (4.1)
NI - NS = S - I
(5.3)
If NI >NS, S > I which implies
NI = C + S
(5.1)
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
b. National spending (NS) is
divided into personal spending (C) and investment (I)
3. A healthy economy will tend to run a current account deficit.
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF
GOODS, SERVICES, AND CAPITAL
C.THE LINK BETWEEN THE CURRENT AND CAPITAL ACCOUNTS
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
8. The Balance-of-payment measures a. Some Definitions: 1.) Basic Balance
a.) consists of current account and longterm capital flows.
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
3. Three Major Accounts: a. Current b. Capital c. Official Reserves
4. Current Account records net flow of goods, services, and unilateral transfers.
4. Implications: a. If CA is in surplus, the nation must be a net exporter of capital. b. If CA is a deficit, the nation is a major capital importer. c. When NS > NI, the excess must be acquired through foreign trade.
1.) Basic Balance (con’t) c.) excludes short-term capital flows that heavily depend on temporary factors.
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
5. Capital Account a. Function: records public and private investment and lending. b. Inflows = credits c. Outflows = debits
2.) Net Liquidity Balance: measures the change in private domestic borrowing or lending require to keep payments equal without adjusting official reserves.
CHAPTER OVERVIEW
I. BALANCE-OF-PAYMENT CATEGORIES
II. THE INTERNATIONAL FLOW OF GOODS, SERVICES,AND CAPITAL
III. COPING WITH CURRENT ACCOUNT DEFICITS
第五章国际收支与国际联系(国际财 务管理,JosephFGre
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
6. Official Reserves Account a. Function: 1.) measures changes in international reserves owned by central banks. 2.) reflects surplus/deficit of a.) current account b.) capital account
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
1.) Basic Balance (con’t) b.) emphasizes longterm trends.
第五章国际收支与国际联系(国际财 务管理,JosephFGre

BALANCE-OF-PAYMENT CATEGORIES
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
2. A nation which spends more than it produces has a net capital inflow producing a capital account surplus.
第五章国际收支与国际 联系(国际财务管理
,JosephFGre
2020/12/11
第五章国际收支与国际联系(国际财 务管理,JosephFGre
CHAPTER 5
THE BALANCE OF PAYMENTS AND INTERNATIONAL
LINKAGES 第五章国际收支与国际联系(国际财 务管理,JosephFGre
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
5. Capital Account (con’t) d. Transactions classified as 1.) portfolio 2.) direct 3.) short term
第五章国际收支与国际联系(国际财 务管理,JosephFGre
PART II. THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
II. LINKS FROM INTERNATIONAL TO DOMESTIC FLOWS
A. Global Linkages set of basic macroeconomic identities which link: domestic spending and production to current and capital accounts
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
6. Official Reserves Account (con’t) b. Reserves consist of 1.) gold 2.) convertible securities
excess saving = the capital account balance
e. Implications:
1. A nation which produces more than it spends will save more than it invests domestically with a net capital outflow producing a capital account deficit.
PART I. BALANCE-OF-PAYMENT
CATEGORIES
A. THE BALANCE OF PAYMENTS (B-O-P) 1. PURPOSE: Measures all financial and economic transactions over a specified period of time.
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL
B. Domestic Savings and Investment and the Capital Account 1. National Income Accounting a. National Income (NI) is either spent (C) or saved (S)
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
7. Net Effects: a. Sum of all transactions must be zero:
1.) current account 2.) capital account 3.) official reserves
that surplus capital spent overseas.
第五章国际收支与国际联系(国际财 务管理,JosephFGre
THE INTERNATIONAL FLOW OF
GOODS, SERVICES, AND CAPITAL
d. In a freely-floating system,
第五章国际收支与国际联系(国际财 务管理,JosephFGre
BALANCE-OF-PAYMENT CATEGORIES
3.) Official Reserve Transactions Balance
- measures adjustments
needed by official
reserves.