《宏观经济学教学课件》Chapter_12.pptVIP

Introduction National economies are becoming more closely interrelated Economic influences from abroad have affects on the U.S. economy Economic occurrences and policies in the U.S. affect economies abroad When the U.S. moves into a recession, it tends to pull down other economies When the U.S. is in an expansion, it tends to stimulate other economies In this chapter we present the key linkages among open economies and introduce some first pieces of analysis Introduction Economies are linked through two broad channels Trade in goods and services A trade linkage: Some of a country’s production is exported to foreign countries ? increase demand for domestically produced goods Some goods that are consumed or invested at home are produced abroad and imported ? a leakage from the circular flow of income Finance U.S. residents can hold U.S. assets OR assets in foreign countries Portfolio managers shop the world for the most attractive yields As international investors shift their assets around the world, they link assets markets here and abroad ? affect income, exchange rates, and the ability of monetary policy to affect interest rates The Balance of Payments and Exchange Rates Balance of payments: the record of the transactions of the residents of a country with the rest of the world Two main accounts: Current account: records trade in goods and services, as well as transfer payments Capital account: records purchases and sales of assets, such as stocks, bonds, and land External Accounts Must Balance The central point of international payments is very simple: Individuals and firms have to pay for what they buy abroad If a person spends more than her income, her deficit needs to be financed by selling assets or by borrowing Similarly, if a country runs a deficit in its current account the deficit needs to be financed by selling assets or by borrowing abroad Selling/borrowing implies the country is running a capital account surplus ? any current account deficit if of nec