国际金融BalanceofPayment.ppt

Outline of Today’s Lecture Foundation of BOP Imbalance of BOP Adjustment of BOP Homework Balance of Payments Accounting The statistical record of a country’s international transactions over a certain period of time presented in the form of double-entry bookkeeping. Balance of Payments Entries Summary Balance of Payments Accounts They are composed of the following: 1.The Current Account 2.The Capital Account 3.The Official Reserves Account 4.Statistical Discrepancy 1.The Current Account Content: Includes all imports and exports of goods and services. Includes unilateral transfers of foreign aid. Nature: If the debits exceed the credits, then a country is running a trade deficit. If the credits exceed the debits, then a country is running a trade surplus. Categories of CA Merchandise trade: exports and imports of tangible goods: Oil, wheat, clothes, automobiles etc. Trade balance: net merchandise exports Categories of CA Services/invisible trade: payments and receipts for legal, consulting, and engineering services, royalties for patents and intellectual properties, insurance premiums, shipping fees, and tourist expenditures. Factor income: payments and receipts of interest, dividends, and other income on foreign investments previously made. Categories of CA Unilateral transfers: unrequited payments, foreign aid, reparations, official and private grants and gifts. Relationship between exchange rate and CA: J-curve effect CA balance/trade balance is sensitive to exchange rate changes. Question: In practice how sensitive it is? Local Currency Pricing Stability-Japanese case M.Knetter 1993：　 　 　 　　?Exchange Rate ??Mark up? Pricing Stability ７０Ｓ US and Japan Auto-War。 　　 Local Currency Pricing Stability-Chinese case Feng, XiaoBing and Ilan Alon (2007), “Chinese RMB Exchange Rate and Local Currency Stability in ASEAN,” China Economic Review, 18 (4), USA. The Capital Account Measures the difference between U.S. sales of as