International Financial Crises. Current Account: Net income earned overseas through trade, interest, dividends, profits, wages or gifts. (NFI +NX) Bureau.

Slides:



Advertisements
Similar presentations
1 MACROECONOMICS AND THE GLOBAL BUSINESS ENVIRONMENT The Current Account, the Balance of Payments, and National Wealth 2 nd edition.
Advertisements

BALANCE OF PAYMENTS. National Income vs. Domestic Income Net Factor Income [NFI] is income earned on overseas work or investments minus income generated.
Balance of Payments Where New Zealand's international transactions are summarised International transactions include the value of – Inflows and outflows.
The Balance of Payments © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as.
Balance of Payments Accounting. The Balance of Payments Recall the open economy accounting identity: Income = ExpendituresRecall the open economy accounting.
Balance of Payments Phil Bryson Global Trade and Finance.
International finance. The Balance-of- Payments Accounts Chapter 1.
Copyright © 2011 Pearson Addison-Wesley. All rights reserved. Chapter 9 Trade and the Balance of Payments.
Chapter 17: Macroeconomics in an Open Economy © 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. 1 of 32.
Slide 12-1Copyright © 2003 Pearson Education, Inc. The National Income Accounts  Gross national product (GNP) The market value of all final goods and.
The Balance of Payments: Linking the United States to the International Economy The Current Account Trade Flows for the United States and Japan, 2006.
Financial Markets and International Capital Flows Chapter 11.
The National Income Accounts
Summary of U.S. International Transactions Exports of goods and services and income receipts 1,418,568 Goods, balance of payments basis772,210 Services293,492.
International Financial Crises. Current Account: Net income earned overseas through trade, interest, dividends, profits, wages or gifts. (NFI +NX) Bureau.
National Income Accounting and the Balance of Payments November 2011
1 National Income and Product Accounting Gross vs. Net Domestic vs. National Product vs. Income.
Copyright ©2004, South-Western College Publishing International Economics By Robert J. Carbaugh 9th Edition Chapter 10: The Balance of Payments.
A Note on The Current Account: Why the large current account deficit of the United States is not a bad thing.
Carbaugh, Chap The Balance of Payments Balance of Payments  A record of international transactions between residents of one country and the rest.
C h a p t e r seventeen © 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1 st ed. Prepared by: Fernando & Yvonn.
1 Section 1 The Balance of Payments. 2 Content Objectives The National Income Accounts S, I, and CA The BOP Accounts Bookkeeping Summary.
International Finance
© 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. Fernando & Yvonn Quijano Prepared by: Chapter 17 Macroeconomics.
© 2009 Prentice Hall Business Publishing Economics Hubbard/O’Brien UPDATE EDITION. Fernando & Yvonn Quijano Prepared by: Chapter 29 Macroeconomics in an.
University of Papua New Guinea International Economics Lecture 14: National Income Accounting and the Balance of Payments.
Slides prepared by April Knill, Ph.D., Florida State University Chapter 4 The Balance of Payments.
Balance of payments What is the price of a country’s currency?
Chapter Two National Income Accounting Gross Domestic Product and Gross National Product 1. Calculating GDP Final goods and value added current output.
Balance of Payments 3/2/2012 Unit 3: Exchange Rates.
International Finance Frederick University The foreign exchange market The foreign exchange market – worldwide institutions that exist for the purpose.
The Balance of Payments: Linking the United States to the International Economy Current account records a country’s net exports, net income on investments,
Copyright © 2006 Pearson Addison-Wesley. All rights reserved Preview National income accounts  measures of national income  measures of value of.
Copyright © 2012 Pearson Addison-Wesley. All rights reserved. Chapter 13 National Income Accounting and the Balance of Payments.
Circular Flow in Economics
24 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 12 Supplementary Notes. GNP = Expenditure on a Country’s Goods and Services Y = C d + I d + G d + EX = (C-C f ) + (I-I f ) + (G-G f ) + EX = C.
CHAPTER 5 SAVING AND INVESTMENT IN THE OPEN ECONOMY.
10/13/20151 Outline 2: The Balance of Trade, Balance of Payments (BOP) and International Macroeconomics 2.1 Introduction to the Balance of Trade and Payments.
National Income Accounts and Balance of Payments Accounting.
An Introduction to International Economics
Balance-of-Payments Accounts and Net Financial Flows.
Chapter Twenty- Nine: The Global Economy and Policy.
 In addition to calculating GDP, Stats Canada uses the national income accounts to calculate other things too:  Gross National Product  Total income.
The Composition of The Global Flow of Funds in East Asia Nan Zhang The 11th International Conference of Northeast Asian Area August 19-20, 2004, Chang.
Economic Goal 4: External Stability Balance of Payments.
Chapter 12 National Income Accounting and the Balance of Payments.
 The balance of payments is an accounting record of the money value of trade (goods and services) between Australia and the rest of the world.  Money.
Circular Flow of Income
Carbaugh, Chap Balance of Payments Keep track of international transactions between residents of a country and the rest of the world International.
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin The Balance-of- Payments Accounts.
Balance of payment. Definition of Balance of Payment Balance of Payments (BoP) statistics systematically summaries the economic transactions of an economy.
Capital Flows: The Balance of Payments Amy B. Hennessy Federal Reserve Bank of Atlanta.
1 of 36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall · Macroeconomics · R. Glenn Hubbard, Anthony Patrick O’Brien, 3e. Chapter.
Chapter 5 Saving and Investment in the Open Economy Copyright © 2016 Pearson Canada Inc.
Balance of Payments Dr. Raj Agrawal. Part I Balance of Payments Accounting.
International Economics Tenth Edition
International Economics Tenth Edition
Copyright ©2005, Thomson/South-Western International Economics By Robert J. Carbaugh 10th Edition Chapter 10: The Balance of Payments.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall1 Chapter 4: The Balance of Payments Power Points created by: Joseph F. Greco Ph. D.
1 Lecture 2 Balance of Payments. 2 Chapter 13 Balance of Payments 13.1 Introduction 13.2 Balance-of-Payments Accounting Principles 13.3 The International.
National Income, Saving, & the Balance of Payments
MODULE 20 (56) Savings, Investment Spending, and the Financial System
International Economics By Robert J. Carbaugh 9th Edition
International Economics By Robert J. Carbaugh 7th Edition
Capital account Bea.gov Newyork.fed.org.
Prepared by Anton Ljutic
U.S. Balance of Payments Account
Lecture 5 Balance of Payments
International Economic Activities of Nations
Presentation transcript:

International Financial Crises

Current Account: Net income earned overseas through trade, interest, dividends, profits, wages or gifts. (NFI +NX) Bureau of Economic Analysis Balance of Payments Table

Sources of Income

East Asian Crisis IMF World Economic Outlook Database

Private Savings: Disposable Income less Consumption. Public Savings: Budget Balance If Savings is insufficient to finance investment, funds must be made up from global sources. Capital Outflows = Domestic Savings – Domestic Investment

Capital account 39 Capital account transactions, net -152 Financial account 40 U.S.-owned assets abroad, excluding financial derivatives (increase/financial outflow (-)) U.S. official reserve assets U.S. government assets, other than official reserve assets U.S. private assets Foreign-owned assets in the United States, excluding financial derivatives (increase/financial inflow (+)) Foreign official assets in the United States Other foreign assets in the United States Financial derivatives, net 13735

Current account and capital account Public Savings GNI + Transfers -Household Consumption –Taxes Private Savings Taxes - Government Consumption-Transfers Savings – GCF GNI – Consumption – GCF NFI+GDP – Consumption – GCF NFI + NX