short answer国际经济学.docx

short answer国际经济学.docx

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shortanswer国际经济学

SHORTANSWER

1.Whatarethecomponentsofthecurrentaccountofthebalanceofpayments?

ANS:

Thecurrentaccountincludestransactionsingoodsandservices,incomeflows,andunilateraltransfers.

2.Concerningthebalanceofinternationalindebtedness,whenisacountryanetcreditororanetdebtor?

ANS:

Acountryisanetcreditorwhenitsclaimsonforeignnationsexceedforeignclaimsonit.Thenationisanetdebtorwhenforeignnations'claimsonitexceeditsclaimsonforeignnations.

ESSAY

1.HowdowemeasuretheinternationalinvestmentpositionoftheUnitedStatesatanypointintime?

HowdidtheU.S.becomeanetdebtornationsorapidly?

ANS:

TheinternationalinvestmentpositionoftheUnitedStatesismeasuredbythemonetaryvalueofU.S.assetsabroadversusforeignassetsintheUnitedStates.Unlikethebalanceofpayments,whichisaflowconcept,thebalanceofinternationalindebtednessisastockconcept.ThereasonfortheU.S.becominganetdebtornationisthatforeigninvestorshaveplacedmorefundsintheUnitedStatesthantheU.S.residentshaveinvestedabroad.TheUnitedStateshasbeenconsideredattractivetoforeigninvestors.

2.Whatdoesacurrentaccountdeficitmean?

ANS:

Whenacountryrealizesadeficitinitscurrentaccount,ithasanexcessofimportsoverexportsofgoods,services,income,andunilateraltransfers.Thisleadstoanincreaseinnetforeignclaimsuponthehomecountry.Thehomecountrybecomesanetdemanderoffundsfromabroad,thedemandbeingmetthroughborrowingfromothercountriesorliquidatingforeignassets.Theresultisaworseningofthehomecountry'snetforeigninvestmentposition.

SHORTANSWER

1.Whatforeignexchangetransactionsdobankstypicallyengagein?

ANS:

Bankstypicallyengageinspot,forward,andswaptransactions.

2.Howistheequilibriumrateofexchangedetermined?

ANS:

Theequilibriumrateofexchangeinafreemarketisdeterminedbytheintersection（交集）ofthesupplyanddemandschedulesofforeignexchange.

ESSAY

1.Isitpossibletotradeforeignexchangeinthefuturesmarket?

Howdoessuchtradingdifferfromtheforwardmarket?

ANS:

Yes.Inthefuturesmarket,contractingpartiesagreetofutureexchangesofcurrenciesandsetapplicableexchangeratesinadvance.Thefuturesmarketisdistinguishedfromtheforwardmarketinthatonlyalimitednumberofleadingcurrenciesaretraded;moreover,tradingtakesplaceinastandardizedcontractamountandinaspecificgeographiclocation.

2.Whereareforeigncurrencyoptionstraded?

ANS:

Foreign-currencyoptionsaretradedinavarietyofcurrenciesinEuropeandtheUnitedStates.Thebankmarketforforeign-currencyoptionsconsistsoflargeU.S.banksthatwriteoptionsfortheircorporatecustomers.Inaddition,theAmsterdam,Montreal,andPhiladelphiaexchangesprovidecentralizedtradingfloorsdevotedtoforeign-currency-optiontrading.

SHORTANSWER

1.Whatisthepurchasingpowerparityapproachtoexchangeratedetermination?

ANS:

Thepurchasingpowerparityapproachassertsthatchangesinrelativenationalpricelevelsdeterminechangesinexchangeratesoverthelongrun.Acurrencymaintainsitspurchasingpowerparityifitdepreciates（appreciates）byanamountequaltotheexcessofdomestic（foreign）inflationoverforeign（domestic）inflation.

2.Whatisexchangerateovershooting?

ANS:

Anexchangerateissaidtoovershootwhenitsshort-runresponsetoachangeinmarketfundamentalsisgreaterthanitslong-runresponse.

ESSAY

1.Inafreemarket,whatdeterminesexchangeratesinthelongrunandtheshortrun?

ANS:

Thelong-rundeterminantsofexchangeratesincludemarketfundamentalssuchasconsumerpreferencesfordomesticandforeigngoods,governmenttradepolicies,productivitylevels,andrelativepricelevels.Intheshortrun,exchangeratesaredeterminedbyinterestratedifferentialsandmarketexpectationsconcerningeconomicgrowth,inflationrates,andinterestrates.

2.Whatistheassetmarketapproachtoexchangeratedetermination?

ANS:

Overshortperiodsoftime,decisionstoholddomesticorforeignfinancialassetsplayamuchgreaterroleinexchangeratedeterminationthanthedemandforimportsandexportsdoes.Accordingtotheassetmarketapproach,investorsconsidertwokeyfactorswhendecidingbetweendomesticandforeigninvestments:

relativeinterestratesandexpectedchangesinexchangerates.Changesinthesefactors,inturn,accountforfluctuationsinexchangeratesthatweobserveintheshortrun.

SHORTANSWER

1.Comparedtoclassicaleconomists,howdidKeynesianeconomicschangethediscussionoftradeadjustment?

ANS:

Keynesianeconomicsputagreateremphasisontheincomeeffectsoftradeinexplainingtradeadjustment.Theclassicaleconomistsemphasizedpriceandinterestrateadjustments.

2.Whatistheforeignrepercussioneffect?

ANS:

Itreferstoasituationinwhichachangeinonenation'smacroeconomicvariablesrelativetoanothernationwillinduceachainreactioninbothnations'economies.Theconsequenceisthatariseinincomeofanationwithabalance-of-paymentssurplusandthefallinincomeofthenationwithabalance-of-paymentsdeficitaredampened.

ESSAY

1.ExplainDavidHume'stheoryofautomaticadjustmentforbalanceofpaymentsdisequilibria.

ANS:

DavidHume'stheoryprovidedanexplanationoftheautomaticadjustmentprocessthatoccurredunderthegoldstandard.Startingfromaconditionofpaymentsbalance,anysurplusordeficitwouldautomaticallybeeliminatedbychangesindomesticpricelevels.Nationswithapaymentssurpluswouldexperienceinflation;thiswouldleadtoalossofcompetitiveness,adecreaseinnetexports,andafallinthesurplus.Theoppositeappliestonationswithapaymentsdeficit.

2.Isthemonetaryapproachtothebalance-of-paymentspartofthetraditionaladjustmenttheories?

ANS:

Themonetaryapproachtothebalanceofpaymentsispresentedasanalternative,ratherthanasupplementtotraditionaladjustmenttheories.Itmaintainsthat,overthelongrun,paymentsdisequilibriaarerootedintherelationshipbetweenthedemandforandthesupplyofmoney.Adjustmentinthebalanceofpaymentsisviewedasanautomaticprocess.

SHORTANSWER

1.Howdodemandelasticitiesinfluenceacountry'stradepositionwhenexchangerateschange?

ANS:

Accordingtotheelasticitiesapproach,currencydepreciationleadstothegreatestimprovementinacountry'stradepositionwhendemandelasticitiesarehigh.Thisisbecausetheresponseoftradevolumestoexchange-ratechangesishighestwhendemandiselastic.

2.Howistheabsorptionapproachusedforanalyzingtheeffectsofcurrencydevaluation?

ANS:

Theabsorptionapproachprovidesinsightsaboutthechangesinthetradebalancebyconsideringtheimpactofdevaluationonthespendingbehaviorofthedomesticeconomyandtheinfluenceofdomesticspendingonthetradebalance.

ESSAY

1.Whatisapass-throughrelationship?

ANS:

Theextenttowhichexchange-ratechangesleadtochangesinimportpricesandexportpricesisknownasthepass-throughrelationship.Complete（partial）pass-throughoccurswhenachangeintheexchangeratebringsaboutaproportionate（lessthanproportionate）changeinexportpricesandimportprices.Empiricalevidencesuggeststhatpass-throughtendstobepartialratherthancomplete.

2.Howdomovementsinexchangeratesaffectdomesticcosts,inthepresenceofforeignsourcing?

ANS:

Manufacturersoftenobtaininputsfromabroadwhosecostsaredenominatedintermsofaforeigncurrency.Asforeign-currency-denominatedcostsbecomealargerportionofaproducer'stotalcosts,anappreciationofthedomesticcurrencyleadstoasmallerincreaseintheforeign-currencycostofthefirm'soutputandalargerdecreaseinthedomesticcostofthefirm'soutput,comparedtothecostchangesthatoccurwhenallinputcostsaredenominatedinthedomesticcurrency.Theoppositeappliesforcurrencydepreciation.

SHORTANSWER

1.Whichnationsusemultipleexchangeratesthemostandwhy?

ANS:

Multipleexchangeratesareusedprimarilybythedevelopingnationswhowishtoensurethatnecessarygoodsareimportedandlessessentialgoodsarediscouraged.

2.WhatisanSDR?

ANS:

TheSDRisacurrencybasketcomposedoffivecurrenciesestablishedbytheInternationalMonetaryFund.Nationsdesiringexchange-ratestabilityareattractedtotheSDRasacurrencybasketagainstwhichtoanchortheircurrencyvalues.

ESSAY

1.Whatisthedifferencebetweenthecrawlingpegandadjustablepeggedexchangerates?

ANS:

Undertheadjustablepeg,currenciesaretiedtoaparvaluethatchangesinfrequentlybutsuddenly,usuallyinlargejumps.Thecrawlingpegallowsanationtomakesmallchangesinparvalues,perhapsseveraltimesayear,sothattheycreepalongslowlyinresponsetoevolvingmarketconditions.

2.Howcancurrencyboardsanddollarizationpreventcurrencycrises?

ANS:

Acurrencyboardisamonetaryauthoritythatissuesnotesandcoinsconvertibleintoaforeigncurrencyatafixedexchangerate.Themostvitalcontributionacurrencyboardcanmaketoexchange-ratestabilityistoimposedisciplineontheprocessofmoneycreation.Thisresultsingreaterstabilityondomesticpriceswhich,inturn,stabilizesthevalueofthedomesticcurrency.DollarizationoccurswhenresidentsofacountyusetheU.S.dollaralongsideorinsteadoftheirowncurrency.Dollarizationisseenasawaytoprotectacountry'sgrowthandprosperityfromboutsofinflation,currencydepreciation,andspeculativeattacksagainstthelocalcurrency.

PTS:

1

SHORTANSWER

1.Whatpolicyinstrumentshouldbeusedwhendemand-