2. Matakuliah : J0114-Teori Ekonomi
Tahun : 2009
EXCHANGE RATE, THE BALANCE OF PAYMENTS, AND TRADE DEFICITS Pertemuan 26

3. Financing International Trade
U.S. Export Transactions
U.S. Import Transactions
Balance of Payments
The Current Account
Balance on Goods
Balance on Services
Trade Deficit
Trade Surplus
Balance on Current Account
W36.1
Bina Nusantara University

4. Financing International Trade
GLOBAL PERSPECTIVE
U.S. Trade Balances in Goods and Services
Select Nations, 2004
Good and Services Deficit
Goods and Services Surplus
Australia
+6.8
Belgium
+4.4
Canada
-66.5
China
-162
Germany
-45.8
Japan
-75.6
Mexico
-45.1
Netherlands
+11.8
Bina Nusantara University
Source: BEA
-10
-20
-30
-40
-50
-60
-70
-160 10 20

5. Capital and Financial Account
Capital Account
Financial Account
Balance on the Capital and Financial Account
Payments, Deficits, and Surpluses
Balance-of-Payments Deficits and Surpluses
Official Reserves
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6. Flexible Exchange Rates
Flexible or Floating Exchange Rates
Fixed Exchange Rate system
Depreciation and Appreciation
Determinants of Exchange Rates
Changes in Tastes
Relative Income Changes
Relative Price-Level Changes
Purchasing-Power-Parity Theory
Relative Interest Rates
Speculation
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7. Flexible Exchange Rates
The Market for Foreign Currency (Pounds) P Sl
Exchange
Rate: $2 = £1 $2 $3 $1
Dollar
Depreciates
(Pound
Appreciates)
Dollar Price of 1 Pound
Dollar
Appreciates
(Pound
Depreciates) Dl
Bina Nusantara University Ql Q
Quantity of Pounds

8. Flexible Exchange Rates
The Market for Foreign Currency (Pounds) P Sl
Exchange
Rate:
$3 = £1 c $3
Balance
Of Payments
Deficit
Dollar Price of 1 Pound x a b $2 D2
Exchange
Rate:
$2 = £1 $1 Dl Ql Q2
Bina Nusantara University Q
Quantity of Pounds

9. Flexible Exchange Rates
Flexible Rates and the Balance of Payments
Disadvantages of Flexible Exchange Rates
Uncertainty and Diminished Trade
Terms-of-Trade Changes
Instability
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10. Fixed Exchange Rates Use of Reserves Trade Policies
Currency Interventions
Trade Policies
Exchange Controls and Rationing
Distorted Trade
Favoritism
Restricted Choice
Black Markets
Domestic Macroeconomic Adjustments
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11. International Exchange-Rate Systems
The Gold Standard: Fixed Exchange Rates
Devaluation
Gold Flows
Domestic Macroeconomic Adjustments
Collapse of the Gold Standard
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12. International Exchange-Rate Systems
The Bretton Woods System
International Monetary Fund (IMF)
IMF and Pegged Exchange Rates
Official Reserves
Gold Sales
IMF Borrowing
Fundamental Imbalances: Adjusting the Peg
Demise of the Bretton Woods System
The Current System: The Managed Float
Managed Floating Exchange Rates
In Support of the Managed Float
Concerns With the Managed Float
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