Chapter 4 U.S. Foreign Exchange Intervention.pptVIP

U.S. Foreign Exchange Intervention I . Open Questions 1. Based on your own understanding, what is the purpose of U.S. foreign exchange intervention? 2. How do you understand the foreign exchange market? What types of transactions are conducted in the foreign exchange market? 3. Give an example to illustrate the effects of exchange rate changes. 4. How do you describe the process of the Federal Reserve in intervening in the foreign exchange market? II. Teaching Plan This chapter will cover 3 hours. 2 hours for the introduction of background information and explanations of terms and the texts. And the other 1 hour for discussion and practice. III. Teaching Methods Translation of key sentences Paraphrasing of key words and expressions Explanation of new terms Summarizing of key passages Discussion of important issues Questions and answers: interaction between teachers and students IV. Background The health of a nation’s markets and financial systems are affected to some extent by unexpected or large foreign exchange changes and hence government intervention in FX markets. Monetary authorities like the U.S Federal Reserve and the Department of Treasury, occasionally attempts to influence foreign exchange market to counter disorderly market conditions. V. Special Terms Foreign exchange market 外汇交易市场 a network of financial institutions and brokers in which individuals, businesses, banks, and governments buy and sell the currencies of different countries. 金融经纪机构网络，个人、企业、银行和政府买进或卖出不同国家货币的场所。 Bretton Woods System 布雷顿森林体系 the global financial and monetary system was established in 1944 at the New Hampshire resort of Bretton Woods. It created the World Bank and the International Monetary Fund, as well as a fixed link between the United States dollar and gold at US$35 per troy ounce. The system collapsed in 1971, when the link between the dollar and gold was broken, but the institutions survive. 1944年，全球金融货币体系在美国新罕布什尔州的布雷顿森林成立。该体系创建了世界银行和国际货币基金组织，并使美元和黄金挂钩，即3