Valentino Kostner A.A. 2009/20101 Currency dispute heats up in China.

Slides:



Advertisements
Similar presentations
A$ A$ A$ Foreign Exchange Trading Game Welcome to the Enter Designed by Matt Dalgleish.
Advertisements

Unit 3: The Roaring Twenties and the economic crisis b) The ups and downs of the economy.
A Macroeconomic Theory of the Open Economy
POB 1.03 Part 1 Understand business in the global marketplace.
Copyright © 2011 Pearson Addison-Wesley. All rights reserved. Chapter 11 An Introduction to Open Economy Macroeconomics.
Chapter 17 Section 3.
CAPITAL INFLOW AND HOT MONEY Dianqing Xu China Center of Economic Research.
Monetary Transmission Mechanism Chapter 23. Two Types of Economic Models 1. Reduced Form 2. Structural.
Trade Balances around the World Tutor2u Economics, February 2009.
European Monetary Policy and the Euro Lotte Ovaere Fall 2011.
The balance of payments, exchange rates, and trade deficits
The International Financial System and Monetary Policy Chapter 22.
Ec 123 Section 81 THIS SECTION Case. Mexico: From Stabilized Development to Debt Crisis NEXT Hong Kong Financial Crisis.
Chapter 22 Money, Exchange Rates, and Currency Areas Introduction to Economics (Combined Version) 5th Edition.
IMH Understand the components of balance of payments Essential questions: What is balance of payment & how is it calculated? What are the two types.
Aggregate Demand The quantity of real GDP demanded, Y, is the total amount of final goods and services produced in the United States that households (C),
By Kristina Erickson and Sam Porter. Harder to find products made in the US than in China Harder to find products made in the US than in China China exports.
Warm up 1. What is the difference between arbitration and mediation when a third party is involved in contract disputes? 2. What is the difference between.
1 Chapter 9 part 2 International Finance These slides supplement the textbook, but should not replace reading the textbook.
The Global Economic Outlook May 2005 Jay H. Bryson, Global Economist Wachovia Corporation.
TEXT Economic Crisis Ends Years of High Growth Asian countries achieved outstanding economic performance for several decades before the economic crisis.
Economics and WWII Post War Review nDnDepression –t–thousands out of work nNnNew Deal –b–boosting the economy but doesn’t get us out of the depression.
China: Today, Tomorrow and the Transition Kenneth W. Hunter Maryland China Initiative, University of Maryland.
Copyright McGraw-Hill/Irwin, 2002 U.S. Export Transaction U.S. Import Transaction Balance of Payments Flexible Exchange Rates The Market for Currency.
Warm-up 1.What is the opportunity cost for Egypt to produce 1 bushel of corn? Cotton? 2.Same for Venezuela? 3.Who should specialize in corn? Why? 4.Who.
GDP Currency value of all final goods and services produced within a country’s borders.
“Hot” Money Flows into China China “bashing” to appreciate the RMB Near –Zero Interest rates in the United States.
Global Imbalances and Global Financial Turmoils Dr. Sompop Manarungsan Faculty of Economics and Chinese Studies Center Chulalongkorn University Bangkok.
Unit-5 Macro Review Foreign Exchange & Balance of Payments.
CHAPTER 2CHAPTER 2 Understanding the United States Business System.
Module 44 Exchange Rates and Macroeconomic Policy
What explains the recent movement of the pound sterling? To see more of our products visit our website at Amy Chapman, Gordonstoun School.
Financial Markets: Bonds and Foreign Exchange. Bond Market: Supply and Demand  Bonds are bought and sold on the open market: supply and demand  Shifts.
Parity Conditions in International Finance. International Fisher Effect The Fisher Effect Nominal interest rate is made up of two components –A real required.
Balance of Payments, Exchange Rates & Trade Deficits
Copyright © 2004 South-Western Hypothetical Market Adjustment to Great Leap Forward How would the GLF have worked in a market economy? Initiating event.
Avakyan Kristina Lakotka Carolina Chukaeva Ira Teacher of Economics Rafalskaya Irina.
Recovery of Developed countries and its impacts on BRICS countries Song Hong Institute of World Economics and Politics( IWEP), Chinese Academy of Social.
Exchange Rate Regimes Because governments set quantity of money, they have significant influence on exchange rates, which in turn is important to net.
Exchange Rate Determination

PUBPOL 542: Indonesia Presentation Indonesia : Walking the Fiscal and Monetary Policy Tightrope Jonathan Haney, David Kase, Vishaal Rana Public.
INTERNATIONAL ECONOMICS UNIT 4. SPECIALIZATION & VOLUNTARY EXCHANGE Most countries don’t produce everything they have and need because they have specialized.
WHY IS CONTROL OF THE RENMINBI CONTROVERSIAL? PEI-LING LIU NILAR THEIN ARTURO PEGUERO.
Objective 1.03 Understand business in the global marketplace. 1.
© 2001 by Prentice Hall, Inc. ECONOMICS: PRINCIPLES IN ACTION C H A P T E R 17 INTERNATIONAL TRADE.
International Business Basics
ECONOMICS: Principles and Applications 3e HALL & LIEBERMAN © 2005 Thomson Business and Professional Publishing Exchange Rates and Macroeconomic Policy.
Simplifying Global Economics, Business, and Finance edunomics.club
OVERVIEW OF VIETNAM’S MACROECONOMY Le Hanh Thao – MA3N0208.
Section 3: International Economics 3.2 Exchange Rates.
© 2007 Thomson South-Western. Open-Economy Macroeconomics: Basic Concepts Open and Closed Economies –A closed economy is one that does not interact with.
Brazil's BOP Crisis. Inflation: The Root of the Problem Runaway inflation was ranging from 100% to 3,000% a year.
Undervalued Currency: China A look at the dynamics of the Chinese Renminbi. By: Adam Starr and Ryan Cortez.
1 © ©1999 South-Western College Publishing PowerPoint Slides prepared by Ken Long Principles of Economics 2nd edition by Fred M Gottheil.
The Chinese Yuan. Currency Rate 1 U.S. Dollar = 6.8 Yuan 1 Yuan = 0.15 U.S. Dollar –Currency rates are constantly changing and need to be checked on.
International Business Basics 3-1. Trading Among Nations Domestic Business International Business (Foreign or world trade) Making, buying, and selling.
Foreign Exchange. Foreign exchange is the price of one currency in terms of another.
Lectures (Chap. 32) A Macroeconomic Theory of the Open Economy.
Recent Developments in the Japanese Economy (1) Real Economic Growth and Productivity (2) Unemployment and Labor Market Conditions (3) Inflation and Asset.
Factors that Affect Foreign Exchange Rates
International Economics
Exchange Rates The rate at which one currency can be exchanged for another e.g. £1 = $1.90 £1 = €1.50 Important in trade.
Foreign Exchange If a certain good costs $100, how many euros does it cost? So nations have worked out systems that facilitate the exchange of currencies.
China’s Undervalued Currency
Principles of Economics 2nd edition by Fred M Gottheil
Foreign Exchange & Balance of Payments
USA - China.
BETONLINEBETONLINE A·+A·+
International Economics
Presentation transcript:

Valentino Kostner A.A. 2009/20101 Currency dispute heats up in China

Valentino Kostner A.A. 2009/20102 Who are the main Characters?

Valentino Kostner A.A. 2009/20103 WHY?

Valentino Kostner A.A. 2009/20104 Renminbi features At the moment very low exchange rate; Exports are convenient Huge amounts of money entered Great possibility to make investments

Valentino Kostner A.A. 2009/20105 Problems Inflation Raise in American public debt towards China International economic crisis

Valentino Kostner A.A. 2009/20106 Future actions Chinese government should start appreciating the renminbi in order to fight inflation and to reach the real value of this currency. Improve business relationships with USA for mutual favors in the next future.