国际货币与金融经济学课件01

1、Chapter 1:Keeping Up With a Changing World-Trade Flows, Capital Flows, and the Balance Of PaymentsI. Chapter OverviewThe chapter begins by discussing on the importance of international economic integration, citing recent current events that demonstrate the widely varying opinions of the advantages a

2、nd disadvantages of international trade and finance. The chapter sets the stage to logically examine these opinions and stresses the need to begin by understanding how international transactions are measured. The second section of the chapter defines the broad concept of globalization which includes

3、 increased market integration, the expansion of world governance, and the increased mobility of people and information; and the narrow focus of economic integration, which refers to the strengthening of existing and creation of new international linkages. The chapter then proceeds to distinguish the

4、 real and financial sectors that link the worlds economies. Historical data are presented to give a sense of the growth of world trade and transactions in global financial markets during the past few decades. In the third section of the chapter, international balance of payments accounting is descri

5、bed in terms of a double entry bookkeeping system. The components of each of the three major accounts, (1) the current account, (2) the private capital account, and (3) the official settlements balance, are discussed in detail. The usage of the terms balance of payments deficit and balance of paymen

6、ts surplus are equated to a positive official settlements balance and a negative official settlements balance respectively, as distinct from the term overall balance of payments which must be zero by construction. The next section provides a series of concrete examples of international transactions

7、and the ways that these impact the balance of payments accounts. The examples used are: (1) The importation of an automobile, which registers as a debit under current account merchandise and a credit under capital flows in the category of foreign assets in the U.S. (2) The services consumed by a stu

8、dent who travels abroad, which registers as a debit under current account services, and a credit under capital flows in the category of foreign assets in the U.S. (3) The purchase of a domestic treasury bill by a foreign resident, which registers as a credit under capital flows as a foreign asset in

9、 the U.S., and as a debit under capital flows as a U.S. asset abroad. (4) The payment of interest by the U.S. on a foreign-held asset, which registers as debit under current account income and a credit under capital inflows in the foreign assets in the U.S. category. (5) The provision of humanitaria

10、n aid abroad by a U.S. charitable organizations in the form of a donation of wheat, which registers as a credit in the current account merchandise category, and a debit in the unilateral transfers category.The next section provides a discussion of what it means for a country to be a net creditor or

11、net debtor in terms of capital account balances. The section applies the material to an examination of debt relief for heavily indebted poor countries (a hot political topic which may provide a good opportunity for class discussion).The final section of the chapter relates current account balances t

12、o capital flows. It examines this issue based solely on accounting identities provided earlier. Domestic savings less domestic investment determine the current account balance as well as net capital flows. Thus, the current account balance is directly related to net capital flows.II. OutlineA.Why It

13、 Is Important to Understand International Money and FinanceB.International Economic Integration: The Importance of Global Trade and Financial Markets1.The Real and Financial Sectors of an Economy2.World Trade in Goods and Services3.International Transactions in Financial Assets4.The Most Globalized

14、NationsC.The Balance of Payments1.Balance of Payments as a Double-Entry Bookkeeping System2.Balance-of-Payments Accountsa.The Current Account1)Goods2)Services3)Incomeb.Capital Accountc.The Official Settlements Balance3.Deficits and Surpluses in the Balance of Payments4.Other Deficit and Surplus Meas

15、uresD.Examples of International Transactions and How they Affect the Balance of Payments1.Example 1: Import of an Automobile2.Example 2: A College Student Travels Abroad3.Example 3: A Foreign Resident Purchases a Domestic Treasury Bill4.Example 4: The United States Pays Interest on a Foreign-Held As

16、set5.Example 5: A Charitable Organization in the United States Provides Humanitarian Aid Abroad6.Example CombinedE.The Capital Account and the International Flow of Assets1.Example: A College Student2.A Capital Account Surplus3.The United States as a Net Debtor4.Debt Relief for the Heavily Indebted

17、Poor CountriesF.Relating the Current Account Balance and Capital FlowsG.Chapter SummaryIII. Fundamental Issues1.How important is the global market for goods and services?2.How important are the international monetary and financial markets?3.What is a countrys balance of payments, and what does this

18、measure?4.What does it mean for a country to be a net debtor or net creditor?5.What is the relationship between a nations current account balance and its capital flows?IV. Chapter Features1.Management Notebook: “What are the Most Globalized Firms?”This notebook first considers the largest multinatio

19、nal enterprises (MNEs) in the world and then considers the worlds most globalized firms. The measure of globalization that is used is the transnationality index of the United Nations Conference on Trade and Development (UNCTAD). This measure averages the values of the ratios of foreign sales to tota

20、l sales, foreign assets to total assets and employees abroad to total employees. Typically the most globalized firms are the MNEs of smaller advanced economies.For Critical Analysis: Being globalized should not be an objective in and of itself. A firm may want to globalize if there are gains that en

21、hance its profitability. For example, a firm may want to globalize if there are economies of scale to be enjoyed in doing so.2.Management Notebook: Are Trade and Foreign Direct Investment Substitutes or Complements?Traditional thought has considered trade and foreign direct investment (FDI) as alter

22、native means of serving a foreign market. Consequently, trade and FDI have been viewed as substitutes. More recent research has shown that the relationship between trade and FDI may likely be considerable more complex; suggesting that trade and FDI may be either substitutes or complements. FDI may s

23、erve as a means by which a firm can improve its competitiveness and increase trade as opposed to substitute for trade. For critical analysis: The service sector tends to be very localized and does not typically trade in intermediate products. Hence, if a firm established a presence in a foreign mark

24、et-to service a foreign market-it no longer needs to export to the foreign market.3.Online Notebook: “Are U.S. Exports Understated Because of the Internet?”This Notebook examines measurement problems in tracking international trade. One particular problem is that small value exports-transactions of

25、less than $2,500-need not be reported. Because most internet transactions are small value transactions, U.S. exports may be understated. As a result, the U.S. trade deficit may not be as large as that reported by the U.S. Commerce Department.For Critical Analysis: The U.S. trade deficit may not be a

26、s large as reported. Hence, the large U.S. current account deficit may no be as large as reported.V. Answers to End of Chapter Questions1.Debits are reported as negative values while credits are reported as positive values.Goods ServicesIncomeUnilateralTransfersCurrentAccounta-$1,000-$1,000B-$20,000

27、-$20,000c-$1,000,000-$1,000,000d$100$1002.Using the table provided above:a.The balance on goods and services is a deficit of $21,000.b.The current account balance is a deficit of $1,020,900. c.The capital account balance would be a surplus of $1,020,900.3.The balance on merchandise trade is the diff

28、erence between exports of goods, 719 and the imports of goods, 1,145, for a deficit of 426. The balance on goods, services and income is 719 + 279 +284 1145 - 210 269, for a deficit of 342. Adding unilateral transfers to this gives a current account deficit of 391, -342 + (-49) = -391. (Note that in

29、come receipts are credits and income payments are debits.) 4.Because the current account balance is a deficit of 391, then without a statistical discrepancy, the capital account is a surplus of 391. In this problem, however, the statistical discrepancy is recorded as a positive amount (credit) of 11

30、. Hence, the sum of the debits in the balance of payments must exceed the credits by 11. So, the deficit of the current account must be greater than the surplus on the capital account by 11. The capital account, therefore, is a surplus of 391 11 = 380.5.A balance-of-payments equilibrium (see page 19

31、) is when the debits and credits in the current account and the private capital account sum to zero. In the problem above we do not know the private capital account balance. We cannot say, therefore, whether this country is experiencing a balance-of-payments surplus or deficit or if it is in equilib

32、rium.6.The current account is a deficit of $541,830 and the private capital account balance is a surplus of $369,068. The U.S., therefore, has a balance of payments deficit.7.Positive aspects of being a net debtor include the possibility of financing domestic investment that is not possible through

33、domestic savings; thereby allowing for domestic capital stock growth which may allow job, productivity, and income growth. Negative aspects include the fact that foreign savings may be used to finance domestic consumption rather than domestic savings; which will compromise the growth suggested above

34、.Positive aspects of being a net creditor include the ownership of foreign assets which can represent an income flows to the crediting country. Further, the net creditor position also implies a net exporting position. A negative aspect of being a net creditor includes the fact that foreign investmen

35、t may substitute for domestic investment.8.A nation may desire to receive both portfolio and direct investment due to the type of investment each represents. Portfolio investment is a financial investment while direct investment is dominated by the purchase of actual, real, productive assets. To the

36、 extent that a country can benefit by each type of investment, it will desire both types of investment. Further, portfolio investment tends to be short-run in nature, while FDI tends to be long-run in nature. This is also addressed in much greater detail in Chapter 7.9. Domestic Savings - Domestic I

37、nvestment = Current Account Balance Domestic Savings - Domestic Investment = Net Capital Flows Therefore, Current Account Balance = Net Capital Flows10.Using the equations above, private savings of 5 percent of income, government savings of -1 percent, and investment expenditures of 10 percent would

38、 results in a current account deficit of 6 percent of income and a capital account surplus (net capital inflows) of 6 percent of income. This could be corrected with a reduction in the government deficit (to a surplus) and/or an increase in private savings.11.The transnationality index for World Fil

39、ms is:(533/1233 + 227/615 + 322/1256)/3 = (0.432 + 0.369 + 0.256)/3 = 1.057/3 = 0.352.The transationality index for Music Publishers Worldwide is:(455/2456 + 246/809 + 900/2467)/3 = (0.185 + 0.304 + 0.365)/3 = 0.854/3 = 0.285.Based on this index, World films is the most globalized firm.VI.Multiple C

40、hoice Questions1. Globalization refers to:A.only increasing market integration, while international economic integration refers to the strengthening of existing international linkages of commerce and the addition of new international linkages.B.only the expansion of world governance and global socie

41、ty, while international economic integration refers to the strengthening of existing international linkages of commerce and the addition of new international linkages.C.only the increased mobility of peoples and information, while international economic integration refers to the strengthening of exi

42、sting international linkages of commerce and the addition of new international linkages.D.the increasing market integration, the expansion of world governance and global society, and the increased mobility of peoples and information, while international economic integration refers to the strengtheni

43、ng of existing international linkages of commerce and the addition of new international linkages.Answer: D2. International economic integration refers to:A.the expansion of world governance and society.B.the increased mobility of peoples and information.C.the strengthening of existing international

44、linkages of commerce and the addition of new linkages.D.the strengthening of existing international linkages of commerce but not the addition of new linkages.Answer: C3.Globalization refers to _, and international economic integration refers to _.A.a broader scope of the internationalization process

45、, a narrower focus of the internationalization process.B.a narrower scope of the internationalization process, a broader focus of the internationalization process.C.the same thing as international economic integration, the strengthening of international linkages of commerce.D. None of the above.Answ

46、er: A4.Open trade in goods, services, and financial assets by leading economies of the world at levels close to those observed today:A. have never been experienced.B. had been experienced before World War I.C. had been experienced between World War I and World War II.D. had been experienced only imm

47、ediately before the Korean conflict.Answer: B5.Real sector transactions deal with:A.transactions in goods and services.B.transactions in financial assets.C.transactions in both goods and services and financial assets.D.transactions in neither goods and services nor in financial assets.Answer: A6.Fin

48、ancial sector linkages deal with:A. transactions in goods and services.B. transactions in financial assets.C. transactions in both goods and services and financial assets.D. transactions in neither goods and services nor in financial assets.Answer: A7. In terms of real sector activity, world trade i

49、n goods and services:A. is important only to developed economies.B. is important only to developing economies.C. is important to both developed and developing economies.D. is important to neither developed nor developing economies.Answer: C8.In the last 35 years, the nearly 6 percent per annum growt

50、h in world trade has led to a _-fold cumulative increase in world trade.A. twoB. threeC. fourD. fiveAnswer: D9.When measured as a multiple of world exports of goods and services, foreign exchange turnover in 2004 was approximately:A. 12:1.B. 38:1.C. 61:1.D. 50:1. Answer: D10. Over the last 35 years,

51、 the data on trade and financial flows show:A. decreased real flows and decreased financial flows.B. increased real flows and decreased financial flows.C. decreased real flows and increased financial flows.D. increased real flows and increased financial flows.Answer: D11. If domestic investment is g

52、reater than domestic saving,A. expenditures equal domestic income and net exports equal zero.B. expenditures are greater than domestic income and net exports are negative.C. expenditures are less than domestic income and net exports are positive.D. expenditures are greater than domestic income and n

53、et exports are positive zero.Answer: B12. If domestic investment is less than domestic saving,A. expenditures equal domestic income and net exports equal zero.B. expenditures are greater than domestic income and net exports are negative.C. expenditures are less than domestic income and net exports a

54、re positive.D. expenditures are greater than domestic income and net exports are positive zero.Answer: C13.If domestic savings equals 10 and domestic investment equals 6, then the current account balance equals:A. -16B. -4C. +4D. +16Answer: C14.If a nations domestic savings equals 6 and a nations do

55、mestic investment equals 10, then the nation is experiencing:A. a net capital outflow.B a net capital inflow.C. no net capital inflow or outflow.D. a current account surplus.Answer: B15.If a nations domestic saving is 25 and the nations domestic investment is 30, then the nation is experiencing:A. a

56、 current account surplus.B. a current account deficitC. a net capital inflowD. both B and CAnswer: D16. A current account deficit in the U.S. is:A.necessarily bad because it represents a lack of domestic saving.B.necessarily good because it represents foreign savings in the U.S.C.necessarily bad because it undermines the U.S.s ability to experience economic growth.D.is neither good nor bad.Answer: D17.The balance o