ch01 Keeping Up with a Changing Wr 国际货币与金融经济学英文版课件.ppt

* The United States as a Net Debtor The United States has been a net debtor at various times in its history. The United States was a net debtor in the late 1800s. SOURCE: Data from Economic Review of the federal Reserve Bank of Kansas City. * The Relationship Between the Current Account and the Capital Account Expenditures Approach to National Income National income is the sum of expenditures in the following categories; consumer expenditures, private investment expenditures, government expenditures, and net export expenditures, y= c + ip + g + (x-m) Let the current account, ca equal ca = (x – m) Then y=c + ip + g + ca * The Relationship Between the Current Account and the Capital Account Income Approach Income has three possible uses; it can be spent on current consumption, it can be saved (private saving), and we pay taxes to the government y= c + sp + t Because both approaches equal national income, we can set the two identities equal: c + sp + t = c +ip + g + ca or, sp – ip – (g - t) = ca * The Relationship Between the Current Account and the Capital Account Private Saving Private saving can be used to purchase three types of assets, domestic private investment, government debt (g – t) or to accumulate foreign assets (fa), sp = ip + (g – t) + fa where fa is the (net) accumulation of foreign assets (domestic residents’ purchases of foreign assets in excess of foreign residents’ purchases of domestic assets). Then, by rearrangement sp – ip – (g – t) = fa * The Relationship Between the Current Account and the Capital Account Putting the two together: ca = sp – ip – (g – t) = fa In words, private domestic saving less private domestic investment less the fiscal balance (government saving) equals the current account balance, which also equals the (net) accumulation of foreign assets. * An Example of the Relationship Between the Current Account and the Capital Account Using the equality we derived, ca = sp – ip – (g – t) = fa Suppose a nation