《国际货币与金融经济学》课后习题答案

1、精品文档Answers to End of Chapter QuestionsChapter 1Keeping Up With a Changing World-Trade Flows, Capital Flows, and the Balance Of Payments红色我们考的（我们只考前面5 个 chapter ）1. The balance on merchandise trade is the difference between exports of goods, 719 and the imports of goods, 1,145, for a deficit of 426.

2、The balance on goods, services and income is 719 + 279 +2841145- 210 269, for a deficit of 342. Adding unilateral transfers to this gives a current account deficit of 391, -342 + (-49) = -391. (Note that income receipts are credits and income payments are debits.)2. Because the current account balan

3、ce isa deficit of 391,then withouta statistical discrepancy, the capital account is a surplus of 391.In this problem,however, the statisticaldiscrepancy isrecorded asa positive amount (credit) of 11. Hence, the sum of the debits inthe balance of payments must exceed the credits by 11. So, thedeficit

4、 of the current account must be greater than the surplus onthe capital account by 11. The capital account, therefore, is asurplus of 39111 = 380.3. A balance-of-payments equilibrium is when the debits and credits inthe current account and the private capital account sum to zero. In the problem above

5、 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 equilibrium.4The currentaccount isa deficit of $541,830 andthe private capitalaccount balance is a surplus of $369,068. The U.S.

6、, therefore, has a balance of payments deficit.5 Positive aspects of being a net debtor include the possibility of financing domestic investment that is not possible through domestic savings; thereby allowing for domestic capital stock growth which may allow job,。1欢迎下载精品文档productivity,and income gro

7、wth. Negativeaspectsincludethe factthatforeignsavings maybe used to financedomesticconsumption rather than domestic savings; which willcompromise the growth suggested above.Positive aspects of being a net creditor include the ownership offoreign assets which can represent an income flows to the cred

8、itingcountry. Further, the net creditor position also implies a netexporting position. A negative aspect of being a net creditorincludesthe fact thatforeigninvestmentmaysubstitutefordomesticinvestment.6 A nation may desire to receive both portfolio and direct investmentdue to the typeof investmentea

9、ch represents. Portfolioinvestmentis a financial investment while direct investment is dominated bythe purchase ofactual,real,productiveassets. Totheextentthata countrycan benefitby each type of investment,itwilldesirebothtypes of investment. Further, portfolio investment tends to beshort-runin natu

10、re,while FDI tends tobe long-runinnature. Thisis also addressed in much greater detail in Chapter 7.7.Domestic Savings - Domestic Investment = Current Account Balance Domestic Savings - Domestic Investment = Net Capital FlowsTherefore, Current Account Balance = Net Capital Flows8 Using the equations

11、 above, private savings of 5 percent of income, government savings of -1 percent, and investment expenditures of 10 percent would 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 red

12、uction in the government deficit (to a surplus) and/or an increase in private savings.Chapter 2 （好像这章节都要看）The Market for Foreign Exchange1. Because it costs fewer dollars to purchase a euro after the exchange rate change, the euro depreciated relative to the dollar. The rateof depreciation (in absol

13、ute value) was (1.2168 1.2201)/1.2201100 = 0.27 percent.。2欢迎下载精品文档2. Note that the rates provided are the foreign currency prices of theU.S. dollar. Every value has been rounded to two decimal places which may cause some differences in answers.A$C$Sfr$Australia-2.351.061.121.53Britain0.42-0.450.470.

14、65Canada0.952.23-1.061.45Switzerland0.902.110.94-1.37United States0.651.540.690.73-3The cross rateis 1.702/1.234= 1.379 ( ?/ ),which is smallerin valuethan that observed in the London market. The arbitrageur wouldpurchase 587,544 ($1,000,000/1.702) with the $1 million in the NewYork market. Next the

15、y would use the587,544 in London to purchase?837,250 ( 587,544*1.425). Finally,they would sellthe ?837,250 inthe New York market for $1,033,167 (?837,250*1.234). The profit is#33,167.4. Total trade is (163,681 + 160,829 + 261,180 + 210, 590) = 796,280.Trade with the Euro area is (163,681 + 261,180)

16、= 424,861. TradewithCanada is (160,829 + 210,590) = 371,419. The weight assigned to theeuro is 424,861/796,280= 0.53 and the weight assigned to the Canadiandollar is 0.47. (Recall the weights must sum to unity.)Because the base year is 2003, the 2003 EER is 100. The value of the 2004 EER is:(0.82/0.

17、88) ?0.53 + (1.56/1.59) ?0.47 ?100 = (0.4939 + 0.4611) ?100 = 95.4964, or 95.5. This represents a 4.5 percent depreciation of theU.S. dollar.5The real effective exchange rate (REER) for 2003 is still 100. Thereal rates of exchange are, for 2003, 0.88?(116.2/111.3) = .9187,1.59 ?(116.2/111.7)= 1.6541

18、,and for2004, 0.82 ?(119.0/114.4) = 0.8530,1.56 ?(119.0/115.6) = 1.6059. The value of the 2004 REER is:(0.8530/0.9187)?0.53 + (1.6059/1.6541)?0.47 ?100 = (0.4921 +0.4563) ?100 = 94.84, or 94.8. This represents a 5.2 percentdepreciation of the U.S. dollar in real terms6. Thisis a nominalappreciationo

19、f theeurorelative tothe U.S. dollar.The percent change is (1.191.05)/1.05?100 = 13.3 percent.7. TheJanuary 200 real exchange rate is1.05 ?(107.5/112.7)= 1.0016. TheMay 2004 real rate is 1.19?(116.4/122.2) = 1.1335.。3欢迎下载精品文档8In real terms the euro appreciated relative to the U.S. dollar. Therate of

20、appreciation is (1.1335 1.0016)/1.0016*100 = 13.17 percent.9Absolute PPPsuggests the May 2004 exchange rate should be 122.2/116.4= 1.0498. The actual exchange rate is 1.19. Hence, the euro isovervalued relative to the U.S. dollar by (1.19 1.0498)/1.0498 ?100 = 13.35 percent.10RelativePPPcan be used

21、to calculatea predictedvalue of the exchangerate as:SPPP = 1.05 ?(122.2/112.7)/(116.4/107.5) = 1.0014.11. The actual exchange rate is 1.19. Hence, the euro is overvaluedrelative to the U.S. dollar by (1.191.0014)/1.0014?100 = 18.83percent.Chapter 3Exchange Rate Systems, Past to Present1. Ranking the

22、 various exchange rate arrangements by flexibility isnot so clear cut. Nonethelessthe arrangements described in thischapter are (from fixed to flexible): dollarization, currencyboard, commodity (standard)peg, dollar (standard) peg,currency basket peg, crawling peg, managed float, flexible.2.The two

23、primary functionsofthe International MonetaryFund are:surveillance of member nations' macroeconomic policies, and toprovide liquidity to member nations experiencing paymentsimbalances.3.Thevalue of the Canadian dollar? $50) and the value of the British ($50/1.50).relative to gold is CAN$69(1.38

24、pound relative to gold is 33.334.The exchange ratebetween the Canadian dollar and the British poundis C$/ 2.07 (1.38? 1.50).5. The currency value of the peso can be expressed as $0.50 + ?.50=P1. The exchange rate between the dollar and the euro can be used toconvert the euro amount to its dollar equ

25、ivalent of $0.55. Hence, $1.05=P1, or and exchange value of 0.952 P/$. Using the exchange。4欢迎下载精品文档rate between the dollar and the euro again, the exchange rate6. Because $1.05 is the currency content of the basket, as shown above,and $0.50 of that content is attributable to the dollar, the weight a

26、ssigned to the dollar is 0.50/1.05 = 0.476, or 47.6 percent.Because the weights must sum to unity, the weight assigned to the euro is 52.4 percent.7. The main difference between the two systems was that, in theSmithsonian system, the dollar was not pegged to the value of gold. One reason that the sy

27、stem was short was because there was little confidence that U.S. economic policy would be conducted in a manner conducive to a system of pegged exchange rates.8. The principle responsibilities of a currency board are to issuedomestic currencynotes and peg the value of the domestic currency.A currenc

28、y board is not allowed to purchase domestic debt, act asa lender of last resort, or set reserve requirements.9. The Lourve accord established unofficial limits on currency valuemovements. In a sense, it was peg with bands for each of the main currencies (dollar, yen and mark).10. Differences in the

29、fundamental determinants of currency values between the pegging country and the other country should beconsidered. To this point of the text, the rate of inflation isa good example. Relative PPPcan be used to determine the rate of crawl.11.Under a currency board system, a nationstill maintainsitsdom

30、esticcurrency. Hence, policymakers can change exchange rate policiesand monetary policiesif they so desire. When a nationdollarizesand disposes of itsdomestic currencyit no longer has thisoption.Chapter 4The Forward Currency Market and International FinancialArbitrage1. Given that the exchange rate is expressed as dollars to euros, we treat the dollar as the domestic cur