A-Level济学课件：纠正国际收支失衡政策.pptxVIP

Unit7

PoliciestocorrectBOPdisequilibria

Whenthereisadeficitinthebalanceofpayments,andwhentheexchangeratesystemofthiscountryisnotafreefloatingone,whichmeanstheauto-balancemechanismofdoesnotapply,variouspolicescouldbetakentoimprovethebalanceofpayments.

Thesepoliciescanbegroupedintotwocategories:ExpendituresswitchingpoliciesExpendituredampeningpolicies

ExpenditureswitchingpoliciesAsisnamed,thosepoliciesareseekingtoswiththepurchasingfromforeignmadegoods/servicestodomesticmadegoods/services.Ifthesepoliciesaresuccessful,itisexpectedthatexpenditureonimportedgoodswillfallandexpenditureondomesticmadegoods,eitherfrominsidethecountryandoutsidethecountry,willrise.

ExpenditureswitchingpoliciesBesidestheeffectsonBOP,thereareimpactsofthesepoliciesonothermacro-economicvariableslikeexchangerates,unemployment,inflation,etc.Withlessexpenditureonimportsandmoreearningsonexports,theexchangeratestendtorise,unemploymentwillbelowandthereisgreaterinflationpressures.

ExpendituredampeningpoliciesAnypolicytakenbythegovernmenttoreducethetotalexpenditureintheeconomyiscalledexpendituredampeningpolicy.Thelogicbehindthisisthatreductioninspendingwilldecreasethedemandforimports,whereasdomesticproducerswillfinditishardtosellinthedomesticmarket,thustryhardtosellabroad.Asaresultmoneyoutflowdecreasesandmoneyinflowincreases,BOPwillbeimproved.

ExpendituredampeningpoliciesExpendituredampeningpoliciescanbefurtherdividedintodeflationaryfiscalpoliciesanddeflationarymonetarypolicies.

ExpendituredampeningpoliciesFiscalpoliciesareonesrelevanttothegovernmentexpenditureande.Deflationaryfiscalpoliciesmeansraiseintaxesandreductioningovernmentexpenditure.Allthesepolicieshavetheeffectsofreducinges,andconsequentlylesswillbespentonimports.

Expen