chap 10 Exchange rate and Macroceconomics宏观经济学.pptVIP

3 The Exchange-Rate Systems ◎ Fixed Exchange Rates ○Countries set and defend a given structure of exchange rates. ○Gold Standard System: Each country defines the value of its currency in terms of a fixed amount of gold, thereby establishing fixed exchange rates among the countries on the gold standard. * * Chapter 8 Exchange Rate and Macroeconomic Policy 1 The Balance of International Payments 2 The Determination of Foreign Exchange Rates 3 The Exchange-Rate Systems 4 The Exchange-Rate Systems and Macroeconomic Policy 1 The Balance of International Payments ◎Definition: The balance of international payments is the set of accounts that measures all the economic transactions between a nation and the rest of the world. It includes exports and imports of goods, services, and financial instruments. ◎Debits and Credits ◎Debits and Credits ◎ Components of The Balance of Payments ○ The sum of all items must equal zero: I + II = 0. ◎ Balance of Payments Identity ○ When you buy something, you must either pay for it or borrow for it. 2 The Determination of Foreign Exchange Rates ◎ Exchange rate is the price of one currency in terms of another currency. It has two quotations. ○ Direct quotation?: the price of domestic currency in terms of a foreign currency. ○Indirect quotation: the price of a foreign currency in terms of the domestic currency . 1,004.5700? 1,008.5900? 969.6600? 1,000.5500? 英镑 GBP 838.5700? 841.9200? 809.4300? 835.2200? 欧元 EUR 7.5614? 7.5916? 7.2986? 7.5311? 日元 JPY 632.4950? 633.7600? 626.1700? 631.2300? 美元 USD 中间价 卖出价 现钞买入价 现汇买入价 货币名称 ◎ Foreign exchange rates are determined by the supply of and the demand for foreign currencies. ◎ Exchange Rates and the Balance of Payments ○ Effects of Changes in Trade A Decrease in Demand for Dollars Leads to Dollar Depreciation. ○ Effects of Changes in Capital Flow Mo