• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
AP Macroeconomics Syllabus Course Description
AP Macroeconomics Syllabus Course Description

... A. Comparative advantage, absolute advantage, specialization, and exchange B. Balance of payments accounts 1. Balance of trade 2. Current account 3. Capital account C. Foreign exchange market 1. Demand for and supply of foreign exchange 2. Exchange rate determination 3. Currency appreciation and dep ...
Document
Document

... If fiscal consolidation is not achieved before the capital account is opened, looser fiscal policy may not be adopted in response to contractionary shocks. Domestic financial system must be reformed before opening the capital account of the balance of payments.  If real domestic interest rates are ...
NCEA Level 3 Economics (90632) 2012
NCEA Level 3 Economics (90632) 2012

... A strong dollar means that our export returns are lower when converted back into $NZ. Imports are now relatively cheaper to buy when paid for in $NZ. I – Aggregate Demand would decrease E – as a strong dollar will mean that exports receipts will decrease as it is now relatively less profitable to ex ...
NBER WORKING PAPER SERIES THE EURO AND THE STABILITY PACT Martin Feldstein
NBER WORKING PAPER SERIES THE EURO AND THE STABILITY PACT Martin Feldstein

... What is needed to make a fiscal agreement effective are widely agreed rules for dealing with such things as deficits and surpluses in state owned industries, in subnational governments, and in other quasi-public groups. One reason that this is so hard to do is that countries differ in their institut ...
Foreign Exchange Interventions as an Unconventional
Foreign Exchange Interventions as an Unconventional

... help avoiding problems caused by speculators. Empirical data show that most central banks prefer the latter. As for sterilizing or not the intervention, an unsterilized intervention has lasting effects on the exchange rate as the monetary base changes. For example, if the central bank buys national ...
Report by the Secretariat - World Trade Organization
Report by the Secretariat - World Trade Organization

... November 1980 to December 2002, though, in practice, it was pegged to the U.S. dollar at a fixed parity.9 Since then, in line with commitments agreed with other GCC countries (Chapter II(4)(ii)(a)), including toward the adoption of a common currency (currently planned for 2010), the UAE dirham has b ...
Chapter 10
Chapter 10

... earnings to exchange rates. ¤ This involves reviewing how the earnings forecast in the firm’s income statement changes in response to alternative exchange rate scenarios. ...
C F O N
C F O N

... Prior to the introduction of the QFII scheme, international investors could access China-related stocks only from Hong Kong, namely so-called red chips and H shares. With only approximately 100 Hong Kong-listed companies to invest in, stock selection was severely constrained. By contrast, China’s 14 ...
Macroeconomic Effects of Demonetization in India: Policy
Macroeconomic Effects of Demonetization in India: Policy

... recent monetary policy review kept policy rates (Repo and reverse repo rates) unchanged even after demonetization, contrary to financial market expectations of interest rate cut. ...
On the Colliding Economic and Financial Tectonic Plates
On the Colliding Economic and Financial Tectonic Plates

... aggregate demand and insufficiently mindful of aggregate supply. This is related to the debate on Keynesian stimulus. The US is in its eight consecutive quarter of economic expansion, yet both monetary and fiscal stimluses are at their maximum intensity. The problem with Keynesian stimulus goes beyo ...
Principles of Microeconomics
Principles of Microeconomics

... Purchasing Power Parity (PPP): idea that similar foreign and domestic goods or (basket of goods) should have the same price in terms of the same currency. ◦ How much money is needed to purchase the same basket of goods in 2 countries? ◦ It is the Purchasing Power of a country’s currency required to ...
R E S E A R C H  ... A N D   F I N A N...  Discussion Paper no 19
R E S E A R C H ... A N D F I N A N... Discussion Paper no 19

... reduce risk by constructing ingenious portfolios; well-paid rating agencies decorated the new assets with triple A ratings; banks shifted credit off balance sheets into structured investment vehicles; finally, capital inflows from Asian countries that wanted to accumulate reserves provided ample liq ...
Europe, German Mercantilism and the Current Crisis
Europe, German Mercantilism and the Current Crisis

... There is little doubt that Germany is a great export machine. Since the early 1950s her trade and current balances have been in surplus, with few exceptions, and export, import and surplus ratios on the GDP have steadily risen. In the last decade, the ratio of imports of goods and services increased ...
Macroeconomics, 6e (Blanchard/Johnson) Chapter 1: A Tour of the
Macroeconomics, 6e (Blanchard/Johnson) Chapter 1: A Tour of the

... Answer: One of the benefits of the Euro is largely symbolic. Countries that have in the past century been in wars against each other are now using the same currency. There are economic benefits as well. The use of the same currency will eliminate the need to convert currencies when, for example, buy ...
Unbalanced Trade - Society for Economic Dynamics
Unbalanced Trade - Society for Economic Dynamics

... particular set of trade balances in manufactures. We build on a recent literature that seeks to integrate the gravity relationships exhibited by bilateral trade ‡ows into general equilibrium models of world competition.6 This research provides a framework for tracking the implications of various cou ...
The Seductive Myth of Canada`s Overvalued Dollar
The Seductive Myth of Canada`s Overvalued Dollar

... similar baskets in other countries.2 The basic idea is that if goods are more expensive in Canada, buyers will switch their purchases away from Canada and toward countries with cheaper goods. This switching will cause ...
From the impossible monetary trinity towards economic depression*
From the impossible monetary trinity towards economic depression*

... same direction there can lie only two vertices of the triangle. Stated by economic terms, this means that only two of the three monetary objectives can be mutually consistently achievable. Economic policy must, therefore, decide which one will be rejected. If monetary policy desires to achieve the g ...
Monetary Economics and the European Union Lecture: Week 1
Monetary Economics and the European Union Lecture: Week 1

... Countries with higher inflation rates end up with overvalued currencies and current account deficits (since imports become cheaper and exports more expensive). (b) Balance of payments crises: A country running a current account deficit must sell foreign exchange reserves if it wishes to maintain the ...
International monetary systems
International monetary systems

... The Bretton Woods Era: 1945–1971 British and American policy makers began to plan the post war international monetary system in the early 1940s. The objective was to create an order that combined the benefits of an integrated and relatively liberal international system with the freedom for governmen ...
The European Economy
The European Economy

... • The Euro project should be judged according to whether it achieves its long term aims – (1) Sustained non-inflationary growth – (2) Lower long-term interest rates and higher rates of investment – (3) Lower unemployment – (4) Expansion of the EU single market ...
File
File

... • If central banks were no longer obliged to intervene in currency markets to fix exchange rates, authorities would be able to use monetary policy to reach internal and external balance. • Further, no country would be forced to import inflation (or deflation) from abroad. ...
PDF
PDF

... Under the fixed-rate regime the Bank would have been forced to defend the currency, with a domestic recession as the likely result. The net effect of the Bank’s response was to cushion the impact on the domestic economy and to absorb the shock on the exchange rate. Crucially, interest rates were not ...
RESTRICTEDCode - World Trade Organization
RESTRICTEDCode - World Trade Organization

... liquidity management by allowing more flexible interest rates and sales on tap of Certificates of Deposits (CDs) by the MMA. From July 2001, bank specific credit ceilings (apportioned between banks on the basis of an overall credit ceiling) were abolished, and the limit of 7 percentage points on the ...
Chaebol Relent on Class Action Suits
Chaebol Relent on Class Action Suits

... whenever one of them wins a legal battle against a concern or manager for irregular actions that caused them to suffer financial losses. The system has long been seen as vital to fix the chaebol's irregularities. "A grace period of one year will be needed to help firms make relevant preparations. In ...
Document
Document

... period is called gross domestic product (GDP), denoted Y. To measure the price-level-adjusted value of all final goods and services, we use the GDP price deflator (P) so that real gross domestic product (real GDP), denoted y, equals Y/P. In the United States, the current base year for the GDP price ...
< 1 ... 107 108 109 110 111 112 113 114 115 ... 208 >

Balance of payments

The balance of payments, also known as balance of international payments and abbreviated BoP or BP, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year). These transactions are made by individuals, firms and government bodies. Thus the balance of payments includes all external visible and non-visible transactions of a country . It represents a summation of country's current demand and supply of the claims on foreign currencies and of foreign claims on its currency..These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers.It is prepared in a single currency, typically the domestic currency for the country concerned. Sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus items. Uses of funds, such as for imports or to invest in foreign countries, are recorded as negative or deficit items.When all components of the BOP accounts are included they must sum to zero with no overall surplus or deficit. For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counterbalanced in other ways – such as by funds earned from its foreign investments, by running down central bank reserves or by receiving loans from other countries.While the overall BOP accounts will always balance when all types of payments are included, imbalances are possible on individual elements of the BOP, such as the current account, the capital account excluding the central bank's reserve account, or the sum of the two. Imbalances in the latter sum can result in surplus countries accumulating wealth, while deficit nations become increasingly indebted. The term balance of payments often refers to this sum: a country's balance of payments is said to be in surplus (equivalently, the balance of payments is positive) by a specific amount if sources of funds (such as export goods sold and bonds sold) exceed uses of funds (such as paying for imported goods and paying for foreign bonds purchased) by that amount. There is said to be a balance of payments deficit (the balance of payments is said to be negative) if the former are less than the latter. A BOP surplus (or deficit) is accompanied by an accumulation (or decumulation) of foreign exchange reserves by the central bank.Under a fixed exchange rate system, the central bank accommodates those flows by buying up any net inflow of funds into the country or by providing foreign currency funds to the foreign exchange market to match any international outflow of funds, thus preventing the funds flows from affecting the exchange rate between the country's currency and other currencies. Then the net change per year in the central bank's foreign exchange reserves is sometimes called the balance of payments surplus or deficit. Alternatives to a fixed exchange rate system include a managed float where some changes of exchange rates are allowed, or at the other extreme a purely floating exchange rate (also known as a purely flexible exchange rate). With a pure float the central bank does not intervene at all to protect or devalue its currency, allowing the rate to be set by the market, and the central bank's foreign exchange reserves do not change, and the balance of payments is always zero.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report