《(国际收支帐)》PPT课件.pptVIP

Attributes of the “Ideal” Currency Possesses three attributes, often referred to as the Impossible Trinity: Exchange rate stability As the exchange rate is more stable, the investors and businesses suffer less exchange rate risk Full financial integration Complete freedom of moving funds from one country and currency to another in response to possible economic opportunities or risks Monetary independence Domestic monetary and interest rate policies can be set by individual country to pursue policies to limit inflation, combat recession, and enhance employment ※The forces of economics can not allow the simultaneous achievement of all three. A country must give up one of the above three goals 3-* Attributes of the “Ideal” Currency In 1998-2002, Malaysia maintained very tight controls over the capital flow, so it retained it monetary independence and a stable exchange rate, but lack the integration with global financial and capital market The force of the need of increased capital mobility pushes more countries toward full financial integration such that their business can attract international capital and their domestic economy can be stimulated Therefore, these countries are forced to adopt either purely floating (like the U.S.) or integrated with other countries in monetary unions (like the EU) 3-* EU US Malaysia 1998-2002 Capital Mobility (the content in Ch 4) 3-* Capital Mobility The degree to which capital moves freely across borders is critically important to a country’s balance of payments The high capital mobility sometimes can help a country, but sometimes will hurt a country The financial account surplus has probably been one of the major reasons that the U.S. dollar has been able to maintain its value over the past 20 years Other countries, e.g., Brazil in 1998-1999 and Argentina in 2001-2002, have experienced massive financial account outflows, which were major components of their economic and financial crisis 3-* Capital Mobility Some researchers argue t