Chapter 10 Open Economy 复表经济学院
Chapter 10 Open Economy 0 10 20 30 40 90 91 92 93 94 95 96 97 98 99 00
Topics to be Discussed a National Income Accounting and the Balance of Payments other concepts o The determination of exchange rate o floating exchange rate system o FIxed exchange rate system o Trade environment and policy o Summary of the open economy 复表经济学院
Topics to be Discussed ◼ National Income Accounting and the Balance of Payments & other concepts The determination of exchange rate floating exchange rate system Fixed exchange rate system Trade environment and policy Summary of the open economy
10.1 National Income Accounting and the Balance of Payments & Other Concepts o Balance of Payment recording the financial capital debit and credit purchases or sales of investment assets\ exports or imports of goods or services, etc. Balance of payments include capital account current account and balance account o The Balance of Payments Accounts: a systematical report forms of all economic transactions in a period, including current item capital item and balance item 复表经济学院
10.1 National Income Accounting and the Balance of Payments & Other Concepts Balance of Payment ： recording the financial capital debit and credit、purchases or sales of investment assets 、exports or imports of goods or services, etc. Balance of payments include capital account、current account and balance account. The Balance of Payments Accounts ： a systematical report forms of all economic transactions in a period, including current item、 capital item and balance item
10.1 National Income Accounting and the Balance of Payments Other Concepts o Current item: or goods and labor services item, including: goods (imports and exports); labor services, such as, transportation insurance traveling investment labor services (interest, dividend profit and other labor; international unilateral transfer, such as religion、 charity、 donation to the education、 non-war reparations, etc. o Capital item: all of the exchange activities facing exterior capital and debts, such as investment, stocks and bond trading, etc. o Official repertory item the exterior net trading of national currency department including gold, foreign exchange repertory, etc. If the credit is larger than the debit, then the item will increase; otherwise, if the debit is larger than the credit, then the item will decrease o Error item: balance through this item if the credit does equal to the debit 复具济学院
10.1 National Income Accounting and the Balance of Payments & Other Concepts Current item：or goods and labor services item, including: goods (imports and exports); labor services, such as, transportation、 insurance 、 traveling 、 investment labor services (interest 、 dividend 、 profit) and other labor ； international unilateral transfer, such as religion、charity、donation to the education、 non-war reparations, etc. Capital item：all of the exchange activities facing exterior capital and debts ,such as investment 、stocks and bond trading, etc. Official repertory item ： the exterior net trading of national currency department , including gold 、 foreign exchange repertory ,etc. If the credit is larger than the debit, then the item will increase; otherwise, if the debit is larger than the credit, then the item will decrease. Error item：balance through this item if the credit does equal to the debit
10.1 National Income Accounting and the Balance of Payments Other Concepts O Capital account: recording international investment and debit and credit International investment includes the foreign real estate foreign corporations' stocks foreign governments bonds of individual corporation and government, and the domestic real estate stocks and government bonds purchased by the foreign individual, corporations and governments. International debit and credit includes the domestic corporation and government loan get from foreign bank fund and governments, and the funds lent by the foreign corporations and governments. Capital mobility is defined CF, R is domestic interest, R" is the foreign interest, a is the coefficient, then a-R 济龄院
10.1 National Income Accounting and the Balance of Payments & Other Concepts ( ) R R * CF = a − Capital account：recording international investment and debit and credit. International investment includes the foreign real estate 、foreign corporations’ stocks 、foreign governments’ bonds of individual、 corporation and government, and the domestic real estate、stocks and government bonds purchased by the foreign individual、 corporations and governments. International debit and credit includes the domestic corporation and government’ loan get from foreign bank、fund and governments, and the funds lent by the foreign corporations and governments. Capital mobility is defined CF,R is domestic interest, R* is the foreign interest, a is the coefficient, then: