Chapter Balance of payments【DOC精选】.doc

Chapter1 Balance of payments The Definition of NI Reflects the total productive input or the total value of the final production of a country in course of time. Course of time?Flow Stock Productive input? Final production? Or? Two ways NI Equality in Closing Economy 1.Expenditure： Ｙ≡ Ｃ＋Ｉ＋Ｇ =A 2.Income ：Ｙ≡ Ｃ＋Ｓp+ Ｔ because expenditure equals to income, so: 3. Ｃ＋Ｉ＋Ｇ ≡ Y ≡ Ｃ＋Ｓp+Ｔ Why C appears in both directions of the equality? In what condition, the equality will be proved? NI Equality in Opening Economy Ｙ＝Ｃ＋Ｉ＋Ｇ＋Ｘ－Ｍ Opening economy? X? M? CA=Ｘ－Ｍ The macroeconomic analysis of CA CA=Ｘ－Ｍ CA0, surplus CA0, deficit CA=0, balanced The macroeconomic analysis of CA 2. CA=Y-A CA0, surplus CA0, deficit CA=0, balanced The macroeconomic analysis of CA 3.Ｙ＝Ｃ＋Ｉ＋Ｇ＋Ｘ－Ｍ=Ｃ＋Ｓp+Ｔ CA=S － I CA0, surplus, capital outflow CA0, deficit, capital inflow The macroeconomic analysis of CA 4.Ｙ＝Ｃ＋Ｉ＋Ｇ＋Ｘ－Ｍ=Ｃ＋Ｓp+Ｔ CA=(Ｓp －Ｉ)+(T －G) Two Section Economy Two Deficit Troubles The macroeconomic analysis of CA 5. CA=NIIP －NIIP-1 Position: reflects assets and liabilities IIP NIIP Class Drill Assumption : A NI account’s data: GDP=6000, C=4000, Total Investment=800, Government Investment=1100, Net Investment=200, Government Budget Surplus=30 Calculate: Net Export NDP The Definition of BOP Reflects the total monetary value of all sorts of the economical transactions between residents and non-residents of a given country over a specified time. A specified time? The residents the non-residents? All sorts of economical transactions? Total monetary value? The Definition of BOP 1.Narrow sense Based on Receipt and expenditure 2.Broad sense Based on transactions The BOP as a Flow Statement The BOP is often misunderstood as many people infer from its name that it is a balance sheet, whereas in fact it is a cash flow statement. By recording all international transactions over a pe