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Chapter 16

Payments among Nations

This chapter begins the discussion of international finance and macroeconomics—the subject of the rest of the book. Its major purpose is to show how the balance of payments accounts for international transactions and how the different balances (or sub-balances) can be interpreted. It also presents the international investment position. A country's balance of payments records all economic transactions between the residents of the country and residents of the rest of the world.

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知识点6
案例4
习题60

Knowledge Points

知识点

manual

A Country's Balance of Payments

A country's balance of payments records all economic transactions between the residents of the country and residents of the rest of the world. Each transaction or exchange results in two opposite flows of value. By convention, a credit or positive item is the flow for which the country is paid—it is the item that the country gives up in the transaction, and it sets up a claim on the foreign resident, so that funds (or "money") flow into the country.

  • The balance of payments (BOP) is an accounting of a country's international transactions for a particular time period.
  • In double-entry accounting, each transaction has two items.
  • An item that would cause funds or money to flow into a country is a
manual

The Macro Meaning of the Current Account Balance

The current account balance (CA) has several meanings. First, CA equals the value of the country's net flow (If) of foreign investments (both private and official). Second, CA equals the difference between national saving and domestic real investment (S Id). Third, because CA is approximately equal to the difference (X M) between the value of the country's exports of goods and services and the value of its imports of goods and services, CA is (approximately) equal to the difference between domestic production of goods and services and national expenditures on goods and services (Y E).

  • The country’s current account balance must equal
  • net foreign investment
  • , the increase in the country’s foreign financial assets minus the increase in the country’s foreign financial liabilities.
manual

The Macro Meaning of the Overall Balance

This chapter begins the discussion of international finance and macroeconomics—the subject of the rest of the book. Its major purpose is to show how the balance of payments accounts for international transactions and how the different balances (or sub-balances) can be interpreted. It also presents the international investment position.

  • overall balance
  • should indicate whether a country’s balance of payments has achieved an overall pattern that is sustainable over time. No single indicator represents overall balance perfectly.
manual

The International Investment Position

This chapter begins the discussion of international finance and macroeconomics—the subject of the rest of the book. Its major purpose is to show how the balance of payments accounts for international transactions and how the different balances (or sub-balances) can be interpreted. It also presents the international investment position.

  • International investment position
  • is a statement of the stocks of a nation’s international assets and foreign liabilities at a point in time, usually the end of a year.
manual

Accounting Principles

This chapter begins the discussion of international finance and macroeconomics—the subject of the rest of the book. Its major purpose is to show how the balance of payments accounts for international transactions and how the different balances (or sub-balances) can be interpreted. It also presents the international investment position.

  • The balance of payments (BOP) is an accounting of a country's international transactions for a particular time period.
  • In double-entry accounting, each transaction has two items.
  • An item that would cause funds or money to flow into a country is a
manual

Financial Account

Typically, the first categories we examine are items that are international flows of goods (or merchandise), services, income, and gifts—the current account. Services include flows of transportation, financial services, education, consulting, and so forth. Income includes flows of payments such as interest, dividends, and profits.

  • Current account
  • Financial account
  • Net change in official international reserves

Cases

案例与情境

The current account balance (CA) has several meanings. First, CA equals ...

The current account balance (CA) has several meanings. First, CA equals the value of the country's net flow (If) of foreign investments (both private and official). Second, CA equals the difference between national saving and domestic real investment (S Id). Third, because CA is approximately equal to the difference (X M) between the value of the country's exports of goods and services and the value of its imports of goods and services, CA is (approximately) equal to the difference between domestic production of goods and services and national expenditures on goods and services (Y E).

查看原始摘录

The current account balance (CA) has several meanings. First, CA equals the value of the country's net flow (If) of foreign investments (both private and official). Second, CA equals the difference between national saving and domestic real investment (S Id). Third, because CA is approximately equal to the difference (X M) between the value of the country's exports of goods and services and the value of its imports of goods and services, CA is (approximately) equal to the difference between domestic production of goods and services and national expenditures on goods and services (Y E). The text shows how the current account and goods and services balances have changed over time for four countries—the United States, Canada, Japan, and Mexico.

A good source of up-to-date information on many countries is Balance ...

A good source of up-to-date information on many countries is Balance of Payments Statistics from the International Monetary Fund (IMF). The format for the current account is similar to the presentation used in the text. What we call the financial account in the text is actually the combination of the Financial Account and the Capital Account in the IMF presentation method.

查看原始摘录

A good source of up-to-date information on many countries is Balance of Payments Statistics from the International Monetary Fund (IMF). The format for the current account is similar to the presentation used in the text. What we call the financial account in the text is actually the combination of the Financial Account and the Capital Account in the IMF presentation method. In addition, the official reserves account shown by the IMF includes only changes in official reserve assets held by the country’s own central bank or monetary authority. The omission of changes in foreign official holdings of the country’s liabilities is not a major issue for most countries, but it is important for a country like the United States, whose own liabilities are held in large amounts by foreign central banks.

5.Transaction c contributes to a surplus in the current account because ...

5.Transaction c contributes to a surplus in the current account because it is an export of merchandise that is paid for through an item in the financial account. (Transaction a leaves the current account unchanged because it is both an export and an import. Transaction b contributes to a deficit in the current account because it is an import.

查看原始摘录

5.Transaction c contributes to a surplus in the current account because it is an export of merchandise that is paid for through an item in the financial account. (Transaction a leaves the current account unchanged because it is both an export and an import. Transaction b contributes to a deficit in the current account because it is an import. Transaction d affects no items in the current account.)

10. a.The current account balance is exports of goods and services ...

10. a.The current account balance is exports of goods and services, minus imports of goods and services, plus income received from foreigners, minus income paid to foreigners, plus net unilateral transfers. For this country the current account balance is $60 million (= 200 – 160 + 60 + (−40)) minus income paid to foreigners.

查看原始摘录

10. a.The current account balance is exports of goods and services, minus imports of goods and services, plus income received from foreigners, minus income paid to foreigners, plus net unilateral transfers. For this country the current account balance is $60 million (= 200 – 160 + 60 + (−40)) minus income paid to foreigners. For the country to have a current account surplus, the income paid to foreigners must be less than $60 million.

Exercises

习题与答案

题目 1A Country's Balance of Payments

A country's balance of payments records

  • A) the prices that a country pays for its imports and the prices that the country receives for its imports.
  • B) the flows of value between that country's residents and residents of the rest of the world during a period of time.
  • C) capital gains and losses on a country's international assets.
  • D) the value of a country's holdings of foreign assets, minus the value of foreign holdings of the country's assets.

正确答案：B | the flows of value between that country's residents and residents of the rest of the world during a period of time.

难度：1 Easy Bloom's：Remember

题目 2A Country's Balance of Payments

A credit item in the balance of payments is

  • A) an item for which the country must be paid.
  • B) any loan given out by the country.
  • C) any imported item.
  • D) an item that creates a monetary claim owed to a foreigner.

正确答案：A | an item for which the country must be paid.

难度：1 Easy Bloom's：Remember

题目 3A Country's Balance of Payments

A debit item in the balance of payments is

  • A) any foreign aid received by the country.
  • B) an item for which the country must pay.
  • C) any exported item.
  • D) an item that creates a monetary claim on a foreigner.

正确答案：B | an item for which the country must pay.

难度：1 Easy Bloom's：Remember

题目 4A Country's Balance of Payments

In a nation's balance of payments, which one of the following items is always recorded as a positive entry?

  • A) Changes in foreign currency reserves
  • B) Imports of goods and services
  • C) Military foreign aid supplied to allied nations
  • D) Purchases by foreign travelers visiting the country

正确答案：D | Purchases by foreign travelers visiting the country

难度：1 Easy Bloom's：Remember

题目 5A Country's Balance of Payments

Every international exchange of value is entered into the balance-of-payments accounts ________ time(s).

  • A) one
  • B) two
  • C) three
  • D) four

正确答案：B | two

难度：1 Easy Bloom's：Remember

题目 6A Country's Balance of Payments

The sum of all of debit items in the balance of payments

  • A) equals the overall balance.
  • B) equals the sum of all credit items.
  • C) equals "compensating" transactions.
  • D) equals the errors and omissions.

正确答案：B | equals the sum of all credit items.

难度：2 Medium Bloom's：Understand

题目 7A Country's Balance of Payments

Which of the following financial transaction items is entered as a debit in the U.S. balance of payments?

  • A) A U.S. resident transfers $100 from his account at Credit Suisse in Basel (Switzerland) to his account at a San Francisco branch of Wells Fargo Bank.
  • B) A French resident transfers $100 from his account at Wells Fargo Bank in San Francisco to his Credit Suisse account in Basel.
  • C) A U.S. resident sells his IBM stock to a French resident.
  • D) A U.S. resident sells his Credit Suisse stock to a French resident.

正确答案：B | A French resident transfers $100 from his account at Wells Fargo Bank in San Francisco to his Credit Suisse account in Basel.

难度：2 Medium Bloom's：Understand

题目 8A Country's Balance of Payments

An increase in a nation's financial liabilities to foreign residents is a

  • A) reserve inflow.
  • B) reserve outflow.
  • C) capital imports.
  • D) capital outflow.

正确答案：C | capital imports.

难度：1 Easy Bloom's：Remember

题目 9A Country's Balance of Payments

________ are money-like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them.

  • A) Official international reserve assets
  • B) Unofficial international assets
  • C) Official domestic assets
  • D) Unofficial reserve assets

正确答案：A | Official international reserve assets

难度：1 Easy Bloom's：Remember

题目 10A Country's Balance of Payments

Which of the following is considered a capital inflow?

  • A) A sale of U.S. financial assets to a foreign buyer
  • B) A loan from a U.S. bank to a foreign borrower
  • C) A purchase of foreign financial assets by a U.S. buyer
  • D) A U.S. citizen's repayment of a loan from a foreign bank

正确答案：A | A sale of U.S. financial assets to a foreign buyer

难度：2 Medium Bloom's：Understand

题目 11A Country's Balance of Payments

In a country's balance of payments, which of the following items will be recorded as a debit entry?

  • A) Domestic bank balances owned by foreigners are reduced
  • B) Foreign bank balances owned by domestic residents are reduced
  • C) Assets owned by domestic residents are sold to nonresidents
  • D) Securities are sold by domestic residents to nonresidents

正确答案：A | Domestic bank balances owned by foreigners are reduced

难度：2 Medium Bloom's：Understand

题目 12A Country's Balance of Payments

The role of international ________ is to direct one nation's savings into another nation's investments.

  • A) merchandise trade flows
  • B) services flows
  • C) unilateral transfers
  • D) capital flows

正确答案：D | capital flows

难度：1 Easy Bloom's：Remember

Manual Preview

教师手册摘录

This chapter begins the discussion of international finance and macroeconomics—the subject of the rest of the book. Its major purpose is to show how the balance of payments accounts for international transactions and how the different balances (or sub-balances) can be interpreted. It also presents the international investment position.

A country's balance of payments records all economic transactions between the residents of the country and residents of the rest of the world. Each transaction or exchange results in two opposite flows of value. By convention, a credit or positive item is the flow for which the country is paid—it is the item that the country gives up in the transaction, and it sets up a claim on the foreign resident, so that funds (or "money") flow into the country. A debit or negative item is the flow that the country must pay for—it is the item that the country receives in the transaction, and it sets up a foreign claim on a resident of the country, so that funds (or "money") flow out of the country.

Each transaction has both a credit and a debit item—double-entry bookkeeping—at least once we create a fictional "goodwill" item for things that are given away (unilateral or unrequited transfers). Therefore, if we add up all items for the country's balance of payments, it must add up to zero. What we find interesting about the balance of payments is not that it must completely add up to zero, but rather how it does so. What are the values of different categories of items?

Typically, the first categories we examine are items that are international flows of goods (or merchandise), services, income, and gifts—the current account. Services include flows of transportation, financial services, education, consulting, and so forth. Income includes flows of payments such as interest, dividends, and profits. In addition to the full current account balance, we can also examine the goods and services balance.

Slide Outline

课件线索

  • Accounting Principles
  • A Country’s Balance of Payments
  • Current Account
  • Financial Account
  • Balance of Payments
  • The Macro Meaning of the Current Account Balance
  • Current Account Balance and Goods and Services Balance for the U.S. and Canada 1963-2017
  • Current Account Balance and Goods and Services Balance for Japan and Mexico 1963-2017
  • The Macro Meaning of the Overall Balance
  • The International Investment Position
  • Euro-Crisis Countries: Current Account Balance as a Percent of GDP
  • Euro-Crisis Countries: Net International Investment Position as a Percent of GDP

NextLab Bridge

本章可联动的贸易分析实验

Mundell Trilemma Lab

将《A Country's Balance of Payments》对应的理论或政策机制放到贸易分析实验室中做交互式验证。

NextLab