国际经济学第九版英文课后答案 第16单元.docx
《国际经济学第九版英文课后答案 第16单元.docx》由会员分享,可在线阅读,更多相关《国际经济学第九版英文课后答案 第16单元.docx(9页珍藏版)》请在冰豆网上搜索。
![国际经济学第九版英文课后答案 第16单元.docx](https://file1.bdocx.com/fileroot1/2022-12/12/6bfaab78-4f85-4413-8e64-2126759550a8/6bfaab78-4f85-4413-8e64-2126759550a81.gif)
国际经济学第九版英文课后答案第16单元
*CHAPTER16
(CoreChapter)
THEPRICEADJUSTMENTMECHANISMWITHFLEXIBLE
ANDFIXEDEXCHANGERATES
OUTLINE
16.1Introduction
16.2AdjustmentwithFlexibleExchangeRates
16.2aBalance-of-PaymentsAdjustmentwithExchangeRateChanges
16.2bDerivationoftheDemandCurveforForeignExchange
16.2cDerivationoftheSupplyCurveforForeignExchange
16.3EffectofExchangeRateChangesonDomesticPricesandtheTermsofTrade
CaseStudy16-1:
CurrencyDepreciationandInflationinDevelopingCountries
16.4StabilityofForeignExchangeMarkets
16.4aStableandUnstableForeignExchangeMarkets
16.4bTheMarshall-LernerCondition
16.5ElasticitiesintheRealWorld
16.5aElasticityEstimates
16.5bTheJ-CurveEffectandRevisedElasticityEstimates
CaseStudy16-2:
EstimatedPriceElasticitiesinInternationalTrade
CaseStudy16-3:
EffectiveExchangeRateoftheDollarandtheU.S.CurrentAccountBalance
CaseStudy16-4:
DollarDepreciationandtheU.S.CurrentAccountBalance
CaseStudy16-5:
ExchangeRatesandCurrentAccountBalancesDuringtheEuropeanFinancialCrisisoftheEarly1990s
16.5cCurrencyPass-Through
CaseStudy16-6:
ExchangeRatePass-ThroughtoImportPricesinIndustrialCountries
16.6AdjustmentUndertheGoldStandard
16.6aTheGoldStandard
16.6bThePrice-Specie-FlowMechanism
Appendix:
A16.1TheEffectofExchangeRateChangesonDomesticPrices
A16.2DerivationoftheMarshall-LernerCondition
A16.3StabilityofForeignExchangeMarketsOnceAgain
A16.4DerivationoftheGoldPointsandGoldFlowsUndertheGoldStandard
KeyTerms
DevaluationGoldstandard
DutchdiseaseMintparity
StableforeignexchangemarketGoldexportpoint
UnstableforeignexchangemarketGoldimportpoint
Marshall-LernerconditionPrice-specieflowmechanism
ElasticitypessimismQuantitytheoryofmoney
IdentificationproblemRulesofthegameofthegoldstandard
J-curveeffectCurrencyboard
Pass-througheffect
LectureGuide:
1.Thisisanimportantandchallengingcorechapter.
2.Iwouldcoversections1and2inthefirstlecture.Myexperienceisthatstudentsfindparticularlydifficultthederivationofthedemandandsupplycurvesforforeignexchange.Therefore,Iwouldexplainthematerialinsections16.2aand16.2bverycarefullyandslowly.Iwouldalsoassignproblems1to6.
3.Iwouldcoversections3and4inthesecondlectureandpayspecialattentiontosection16.4b.Iwouldalsoassignproblems7to9.
4.Inthethirdlecture,Iwouldpresentsections5and6andassignproblems10to15.
AnswertoProblems:
1.Thenation'sdemandcurveforimportsisderivedbythehorizontaldistanceofthenation'ssupplycurvefromthenation'sdemandcurveofthetradablecommodityateachpricebelowtheequilibriumlevelofthetradablecommodity.SeeFigure1onthenextpage.
2.Thenation'ssupplycurveforexportsisderivedbythehorizontaldistanceofthenation'sdemandcurvefromthenation'ssupplycurveofthetradablecommodityateachpriceabovetheequilibriumlevelofthetradablecommodity.SeeFigure2.
3.AdepreciationofthedollarshiftsDMdownwardverticallyandleavesPM(inpounds)andthequantityofimportsunchanged(seeFigure3).
4.AdepreciationofthedollarshiftsSXdownwardverticallyandleavesPX(inpounds)andthequantityofexportsunchanged(seeFigure4).
5.AdepreciationofthedollarreducesthequantitydemandedofpoundsbylesswhenDMisinelastic(pointBinFigure5)thanwhenDMiselastic(pointC).
6.AdepreciationofthepoundincreasesthequantitysuppliedofpoundsbylesswhenSXisinelastic(pointBinFigure6)thanwhenSXiselastic(pointC).
7.SMisinfinitelyelasticforasmallnationbecauseasmallnationcandemandanyquantityofimportswithoutaffectingitsprice;similarly,DXisinfinitelyelasticbecauseasmallnationcansellanyamountofitsexportgoodwithouthavingtoreduceitsprice.
8.Thebalanceofpaymentsofasmallnationalwaysimproveswithadepreciationor
devaluationofitscurrencybecausethesmallnation'squantitydemandedofpoundsalwaysfalls(unlessDMisvertical)andthequantitysuppliedofpoundsalwaysrises.
9.SeethetwopanelsofFigure7onpage156.
PanelAshowsthatadevaluationordepreciationofthenation'scurrencyresultsindownwardshiftinDMand,byitself,resultsinareductioninthequantitydemandedoftheforeigncurrencybythenationandthustoanimprovementinthenation'sbalanceofpayments(trade).
PanelBshowsthatadevaluationordepreciationofthenation'scurrencyresultsinadownwardshiftinSXwhich,byitself,leadstoanetreductioninthequantityofforeigncurrencyearnedbythenationthroughexportsandtoaworseningofthenation'sbalanceofpayments(trade).
Sincethereductionintheforeignexchangeearningsofthenationexceedsthereductioninthedemandforforeigncurrencybythenation(comparetheshadedareasinthetwopanelsofFigure7),thenationsbalanceofpayments(trade)worsensasaresultofthedevaluationordepreciation,indicatinganunstableforeignexchangemarket.
10.Althoughtradeneednotbebalancedbilaterallyorevenmultilaterally(withinternationalprivatecapitalflows),theUnitedStatescanbesaidtohaveatradedeficitwithJapanbecauseofthesizeofthistradedeficitandthefactthatithaspersistedforsuchalongtimedespitethesharpdepreciationofthedollarwithrespecttotheyenduringthepastdecade.
11.EventhoughtheU.S.tradedeficitwithJapanhasnotbeenreducedasaresultofthesharpdepreciationofthedollarwithrespecttotheyenduringthepast10years,wecannotconcludethatthetradeorelasticityapproachtobalanceofpaymentsadjustmentdoesnotwork.TheU.S.tradedeficitwithJapanseemtorespondonlywithalagofseveralyearstoexchange-ratechanges.Inadditionotherforcesmayhaveoverwhelmedtheeffectofadepreciationofthedollarwithrespecttotheyen.Forexample,ifJapanisinthecontractionarypartofthebusinesscyclewhiletheUnitedStatesatanexpansionarypartofthecycle,theU.S.tradedeficitwithJapanmayincreasebecauseJapandemandsfewerAmericanproductswhiletheUnitedStatesdemandsmoreJapaneseproducts,despitethedepreciationofthedollarvis-avistheyen.
12.Since$35=1ounceofgold=£14,thedollarpriceof£ortheexchangerate(R=$/£)isfixedat$35/14=$2.50.Thus,fixingthepriceofgoldintermsofnationalcurrenciesunderthegoldstandardestablishesafixedrelationshiporexchangeratebetweenanytwocurrencies.Thisisthemintparity.
13.Sincetoship$2.50worthofgoldfromNewYorktoLondoncosts1%or2.5c,theU.S.goldexportpointorupperlimitoftheexchangerateequals$2.50plus2.5cor$2.525.ThereasonforthisisthatnoU.S.residentwouldpaymorethan$2.525toobtain£1,sincehecouldbuy$2.50worthofgoldfromtheU.S.treasury,shipittotheUnitedKingdomatacostof2.5candsellittotheU.K.treasuryfor£1.Thus,underthegoldstandard,theexchangerateofthepoundcanneverriseabove(andthedollardepreciatepast)theU.S.goldexportpointof$2.525.
14.Similarly,theexchangeratecanneverfallbelow(andthedollarappreciatepast)theU.S.goldimportpointof$2.475.ThereasonforthisisthatnoU.S.residentwouldacceptlessthan$2.475foreachpoundsold,sincehecouldalwaysbuyapoundworthofgoldfromtheU.K.treasuryatthefixedprice,importthisgoldintotheUnitedStatesatacostof2.5c,andresellittotheU.S.treasuryfor$2.50.Thus,theU.S.residentcangetpoundsat$2.475($2.50minus2.5c)andwouldnotacceptlessinsellingthem.Notethattheshippingcostofgoldincludesnotonlythetransportationcostbutalsoallotherhandlingcharges,insurance,andtheinterestforegonewhilethegoldisintransit.
App.1N=($PX/$PM)=($4/$2)=2or200%.
Theresultsisthesameasthatobtainedinsection16.2b,wherePXandPMwerebothmeasuredinpounds.
App.2Adepreciationordevaluationofasmallcountry'snationalcurrencyisnotlikelytoaffectitstermsoftradebecauseDMandSXareinfinitelyelasticorhorizontalforasmallnation,andadepreciationoradevaluationofitscurrencywouldleavePMandPXunchangedwhenmeasuredintermsofeitherthedomesticortheforeigncurrency.
App.3Thefactthatanunstableforeignexchangemarketeventuallybecomesstableforlargeenoughexchangeratechangesisnotofpracticalimportancebecausesuchlargechangesinexchangerateswouldbeveryinflationaryandareusuallyoutsidemostnations'experienceofactualexchangeratechanges.
App.4IfD£shiftstoD'£andS£shiftstoS'£inFigure16-10,theexchangerateRwouldbeR=$4.86/£1andthebalanceofpaymentswouldbeinequilibriumbothunderthegoldstandardandunderaflexibleexchangeratesystem.
Multiple-choiceQuestions:
1.Themoreelasticisanation'sdemandandsupplyofforeignexchangethe:
a.largeristhedevaluationordepreciationrequiredtocorrectadeficitofagivensizeinthenation'sbalanceofpayments
*b.smalleristhedevaluationordepreciationrequiredtocorrectadeficitofagivensizeinthenation'sbalanceofpayments
c.lessfeasibleisaflexibleexchangeratesystem
d.lessfeasibleisadevaluationasapolicytocorrectadeficitinthenation'sbalanceofpayments
2.Anation'sdemandcurveforforeignexchangeisderivedfromthe:
a.foreigndemandcurveforthenations'exports
b.nation'ssupplycurveofexports
*c.domesticdemandcurveforimportsand