曼昆《经济学原理》(宏观经济学分册)英文原版PPT课件——31open_economy.ppt

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1、11 THE MACROECONOMICS OF OPEN ECONOMIESCopyright 2004 South-Western31Open-Economy Macroeconomics:Basic ConceptsCopyright 2004 South-WesternOpen-Economy Macroeconomics:Basic Concepts Open and Closed EconomiesA closed economy is one that does not interact with other economies in the world.There are no

2、 exports,no imports,and no capital flows.An open economy is one that interacts freely with other economies around the world.Copyright 2004 South-WesternOpen-Economy Macroeconomics:Basic Concepts An Open EconomyAn open economy interacts with other countries in two ways.It buys and sells goods and ser

3、vices in world product markets.It buys and sells capital assets in world financial markets.Copyright 2004 South-WesternTHE INTERNATIONAL FLOW OF GOODS AND CAPITALAn Open EconomyThe United States is a very large and open economyit imports and exports huge quantities of goods and services.Over the pas

4、t four decades,international trade and finance have become increasingly important.Copyright 2004 South-WesternThe Flow of Goods:Exports,Imports,Net ExportsExports are goods and services that are produced domestically and sold abroad.Imports are goods and services that are produced abroad and sold do

5、mestically.Copyright 2004 South-WesternThe Flow of Goods:Exports,Imports,Net ExportsNet exports(NX)are the value of a nations exports minus the value of its imports.Net exports are also called the trade balance.Copyright 2004 South-WesternThe Flow of Goods:Exports,Imports,Net ExportsA trade deficit

6、is a situation in which net exports(NX)are negative.Imports Exports A trade surplus is a situation in which net exports(NX)are positive.Exports ImportsBalanced trade refers to when net exports are zeroexports and imports are exactly equal.Copyright 2004 South-WesternThe Flow of Goods:Exports,Imports

7、,Net ExportsFactors That Affect Net ExportsThe tastes of consumers for domestic and foreign goods.The prices of goods at home and abroad.The exchange rates at which people can use domestic currency to buy foreign currencies.Copyright 2004 South-WesternThe Flow of Goods:Exports,Imports,Net ExportsFac

8、tors That Affect Net ExportsThe incomes of consumers at home and abroad.The costs of transporting goods from country to country.The policies of the government toward international trade.Figure 1 The Internationalization of the U.S.EconomyPercentof GDP0510151950195519601965197019751980199019852000199

9、5ExportsImportsCopyright 2004 South-WesternCopyright 2004 South-WesternThe Flow of Financial Resources:Net Capital OutflowNet capital outflow refers to the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.A U.S.resident buys stock in the Toyota cor

10、poration and a Mexican buys stock in the Ford Motor corporation.Copyright 2004 South-WesternThe Flow of Financial Resources:Net Capital OutflowWhen a U.S.resident buys stock in Telmex,the Mexican phone company,the purchase raises U.S.net capital outflow.When a Japanese residents buys a bond issued b

11、y the U.S.government,the purchase reduces the U.S.net capital outflow.Copyright 2004 South-WesternThe Flow of Financial Resources:Net Capital Outflow Variables that Influence Net Capital OutflowThe real interest rates being paid on foreign assets.The real interest rates being paid on domestic assets

12、.The perceived economic and political risks of holding assets abroad.The government policies that affect foreign ownership of domestic assets.Copyright 2004 South-WesternThe Equality of Net Exports and Net Capital OutflowNet exports(NX)and net capital outflow(NCO)are closely linked.For an economy as

13、 a whole,NX and NCO must balance each other so that:NCO=NXThis holds true because every transaction that affects one side must also affect the other side by the same amount.Copyright 2004 South-WesternSaving,Investment,and Their Relationship to the International FlowsNet exports is a component of GD

14、P:Y=C+I+G+NXNational saving is the income of the nation that is left after paying for current consumption and government purchases:Y-C-G=I+NXCopyright 2004 South-WesternSaving,Investment,and Their Relationship to the International FlowsNational saving(S)equals Y-C-G so:S=I+NXorSavingDomestic Investm

15、entNet Capital Outflow=+SINCO=+Figure 2 National Saving,Domestic Investment,and Net Foreign InvestmentPercentof GDP20181614121019601965199519901985198019751970(a)National Saving and Domestic Investment(as a percentage of GDP)2000Domestic investmentNational savingCopyright 2004 South-WesternFigure 2

16、National Saving,Domestic Investment,and Net Foreign InvestmentPercentof GDP443210123Net capitaloutflow(b)Net Capital Outflow(as a percentage of GDP)196019651995199019851980197519702000Copyright 2004 South-WesternCopyright 2004 South-WesternTHE PRICES FOR INTERNATIONAL TRANSACTIONS:REAL AND NOMINAL E

17、XCHANGE RATESInternational transactions are influenced by international prices.The two most important international prices are the nominal exchange rate and the real exchange rate.Copyright 2004 South-WesternNominal Exchange RatesThe nominal exchange rate is the rate at which a person can trade the

18、currency of one country for the currency of another.Copyright 2004 South-WesternNominal Exchange RatesThe nominal exchange rate is expressed in two ways:In units of foreign currency per one U.S.dollar.And in units of U.S.dollars per one unit of the foreign currency.Copyright 2004 South-WesternNomina

19、l Exchange RatesAssume the exchange rate between the Japanese yen and U.S.dollar is 80 yen to one dollar.One U.S.dollar trades for 80 yen.One yen trades for 1/80(=0.0125)of a dollar.Copyright 2004 South-WesternNominal Exchange RatesAppreciation refers to an increase in the value of a currency as mea

20、sured by the amount of foreign currency it can buy.Depreciation refers to a decrease in the value of a currency as measured by the amount of foreign currency it can buy.Copyright 2004 South-WesternNominal Exchange RatesIf a dollar buys more foreign currency,there is an appreciation of the dollar.If

21、it buys less there is a depreciation of the dollar.Copyright 2004 South-WesternReal Exchange RatesThe real exchange rate is the rate at which a person can trade the goods and services of one country for the goods and services of another.Copyright 2004 South-WesternReal Exchange RatesThe real exchang

22、e rate compares the prices of domestic goods and foreign goods in the domestic economy.If a case of German beer is twice as expensive as American beer,the real exchange rate is 1/2 case of German beer per case of American beer.Copyright 2004 South-WesternReal Exchange RatesThe real exchange rate dep

23、ends on the nominal exchange rate and the prices of goods in the two countries measured in local currencies.Copyright 2004 South-WesternReal Exchange RatesThe real exchange rate is a key determinant of how much a country exports and imports.Copyright 2004 South-WesternReal Exchange RatesA depreciati

24、on(fall)in the U.S.real exchange rate means that U.S.goods have become cheaper relative to foreign goods.This encourages consumers both at home and abroad to buy more U.S.goods and fewer goods from other countries.Copyright 2004 South-WesternReal Exchange RatesAs a result,U.S.exports rise,and U.S.im

25、ports fall,and both of these changes raise U.S.net exports.Conversely,an appreciation in the U.S.real exchange rate means that U.S.goods have become more expensive compared to foreign goods,so U.S.net exports fall.Copyright 2004 South-WesternA FIRST THEORY OF EXCHANGE-RATE DETERMINATION:PURCHASING-P

26、OWER PARITYThe purchasing-power parity theory is the simplest and most widely accepted theory explaining the variation of currency exchange rates.Copyright 2004 South-WesternThe Basic Logic of Purchasing-Power ParityPurchasing-power parity is a theory of exchange rates whereby a unit of any given cu

27、rrency should be able to buy the same quantity of goods in all countries.Copyright 2004 South-WesternThe Basic Logic of Purchasing-Power ParityAccording to the purchasing-power parity theory,a unit of any given currency should be able to buy the same quantity of goods in all countries.Copyright 2004

28、 South-WesternBasic Logic of Purchasing-Power ParityThe theory of purchasing-power parity is based on a principle called the law of one price.According to the law of one price,a good must sell for the same price in all locations.Copyright 2004 South-WesternBasic Logic of Purchasing-Power ParityIf th

29、e law of one price were not true,unexploited profit opportunities would exist.The process of taking advantage of differences in prices in different markets is called arbitrage.Copyright 2004 South-WesternBasic Logic of Purchasing-Power ParityIf arbitrage occurs,eventually prices that differed in two

30、 markets would necessarily converge.According to the theory of purchasing-power parity,a currency must have the same purchasing power in all countries and exchange rates move to ensure that.Copyright 2004 South-WesternImplications of Purchasing-Power ParityIf the purchasing power of the dollar is al

31、ways the same at home and abroad,then the exchange rate cannot change.The nominal exchange rate between the currencies of two countries must reflect the different price levels in those countries.Copyright 2004 South-WesternImplications of Purchasing-Power ParityWhen the central bank prints large qua

32、ntities of money,the money loses value both in terms of the goods and services it can buy and in terms of the amount of other currencies it can buy.Figure 3 Money,Prices,and the Nominal Exchange Rate During the German Hyperinflation10,000,000,0001,000,000,000,000,000100,0001.00001.000000000119211922

33、19231924Exchange rateMoney supplyPrice level1925Indexes(Jan.1921 5 100)Copyright 2004 South-WesternCopyright 2004 South-WesternLimitations of Purchasing-Power ParityMany goods are not easily traded or shipped from one country to another.Tradable goods are not always perfect substitutes when they are

34、 produced in different countries.Copyright 2004 South-WesternSummaryNet exports are the value of domestic goods and services sold abroad minus the value of foreign goods and services sold domestically.Net capital outflow is the acquisition of foreign assets by domestic residents minus the acquisitio

35、n of domestic assets by foreigners.Copyright 2004 South-WesternSummaryAn economys net capital outflow always equals its net exports.An economys saving can be used to either finance investment at home or to buy assets abroad.Copyright 2004 South-WesternSummaryThe nominal exchange rate is the relative

36、 price of the currency of two countries.The real exchange rate is the relative price of the goods and services of two countries.Copyright 2004 South-WesternSummaryWhen the nominal exchange rate changes so that each dollar buys more foreign currency,the dollar is said to appreciate or strengthen.When

37、 the nominal exchange rate changes so that each dollar buys less foreign currency,the dollar is said to depreciate or weaken.Copyright 2004 South-WesternSummaryAccording to the theory of purchasing-power parity,a unit of currency should buy the same quantity of goods in all countries.The nominal exchange rate between the currencies of two countries should reflect the countries price levels in those countries.