ch17 Fixed Exchange Rates and Foreign Exchange Intervention 克鲁格曼 教材.pptVIP

Chapter 17 Fixed Exchange Rates and Foreign Exchange Intervention;Chapter Organization;Summary Appendix I: Equilibrium in the Foreign Exchange Market with Imperfect Asset Substitutability Appendix III: The Timing of Balance of Payments Crises ;Introduction;Why Study Fixed Exchange Rates?;Table 17-1: Continued;Table 17-1: Continued;Table 17-1: Continued;Table 17-1: Continued;Table 17-1: Continued; 汇率制度;;The Central Bank Balance Sheet and the Money Supply Central bank balance sheet It records the assets held by the central bank and its liabilities. It is organized according to the principles of double-entry bookkeeping. Any acquisition of an asset by the central bank results in a + change on the assets side of the balance sheet. Any increase in the bank’s liabilities results in a + change on the balance sheet’s liabilities side.;The assets side of a balance sheet lists two types of assets: Foreign assets Mainly foreign currency bonds owned by the central bank (its official international reserves) Domestic assets Central bank holdings of claims to future payments by its own citizens and domestic institutions The liabilities side of a balance sheet lists as liabilities: Deposits of private banks Currency in circulation Total assets = total liabilities + net worth ;Net worth is constant. The changes in central bank assets cause equal changes in central bank liabilities. Any central bank purchase of assets automatically results in an increase in the domestic money supply. Any central bank sale of assets automatically causes the money supply to decline.;Foreign Exchange Intervention and the Money Supply The central bank balance sheet shows how foreign exchange intervention affects the money supply because the central bank’s liabilities are the base of the domestic money supply process. The central bank can negate the money supply effect of intervention though sterilization. ;Sterilization Sterilized foreign exchange intervention Central ban