国际金融学theory of balance of payments课件PPT.ppt

Contents;National Income Account; After a very simple manipulation, one can easily obtain, I= Sp+(T-G) Where, (T-G) in the right hand is government saving (Sg). Therefore, I=S=Sp+Sg This is the identity we are quite familiar with. II. Identities in an Open Economy II.1 What Is Open Economy? Cross border movements of commodity, capital labor.;II.2 International Flows of Commodities Identity Let X represent exports, M represent imports, Y=C+I+G+X-M Where, X-M is also referred to as net export or trade balance (a case of China is illustrated in Figure 1-1-1). Openness of Trade: Openness=(X+M)/Output% An example is presented in Figure 1-1-2. An imaginary example;Figure 1-1-1 China’s Net Export Source: NBSC; in 100 million RMB;Source: Krugman and Obstfeld (2003), pp.300-301. The table below presents a simple calculation of the country’s national income account. Consumption is divided between wheat and milk, with 55 bushels of wheat and 40 gallons of milk (20 bushels of wheat) consumed. 25 bushels of wheat are invested, 10 are purchased by the government, and 10 are exported abroad.;II.3 A Glimpse of Output Components Consumption The largest component of a country’s output (see Figures 1-1-3 and 1-1-4 for an illustration of both the U.S. and China’s consumptions shares). In the U.S. the share of consumption in the GDP ranges from 62-70% ever since the Korean War. China is a little bit lower, however. It seems that the U.S. has been consuming too much while on the contrary, Chinese has been consuming too little since 1970s.; ;Government Purchases As we can see from Figures 1-1-3 and 1-1-4, there is no significant difference between the two economy. Net Export Figure 1-1-4 tells us that since the mid 1970s, the imports have been overrunning the exports in the U.S. Question: Is there any linkage between the consumption and net export in an open economy?;Figure 1-1-3 Components of China’s GNP Sou