国际经济学（英文）课件chapter11.pptVIP

Chapter 11 Chapter 11 Exchange Rate Determination Outlines Purchasing-Power Parity Theory —— Absolute Relative Theory Monetary Approach to the Balance of Payments and Exchange Rates Asset Market Model Exchange Rate Dynamics 11.1 Purchasing-Power Parity Theory (PPP) Absolute Purchasing-Power Parity Theory Relative Purchasing-Power Parity Theory AbsolutePurchasing-Power Parity Theory Definition Formula Limits of Absolute PPP Theory Capital account Nontraded goods and services Transportation costs and other obstructions to international trade RelativePurchasing-Power Parity Theory Definition Formula Limits of Relative PPP Theory Tend to predict overvalued exchange rates for developed nations while undervalued exchange rates for developing nations Empirical Tests of the PPP For highly traded individual commodities In very long periods of time In purely monetary disturbances and in very inflationary periods 11.2 Monetary Approachto the Balance of Payments and Exchange Rates Monetary Approach under Fixed Exchange Rates Monetary Approach under Flexible Exchange Rates Expectations, Interest Differentials and Exchange Rates 1. Under Fixed Exchange Rates Md = kPY Md is inversely related to the interest rate Md = kPY Ms= m (D+F) If Md Ms If Md Ms 2. Under Flexible Exchange Rates —— Contrast to Fixed Exchange Rates Balance-of-payments disequilibria are corrected by automatic changes in exchange rates without any international flow of money or reserves. The nation remains dominant control over its money supply and monetary policy. Determinants of the Exchange Rates —— Between two nations Rate of growth of the money supply Rate of growth of real income Formula R = P/ P* Md = kPY Md = Ms M*d = k*P*Y* M*d = M*s Under A ManagedFloating Exchange Rate System 3. Expectations, Interest Differentials and Exchange Rates Expectations Interest Differentials Expectat