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The Balance of Payments (or chapter 3)
Talk Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Balance of Payments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
For example… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B of P Σ (A:E)  = Overall Balance Basic Balance = A+B+C Overall Balance = A+B+C+D ,[object Object],[object Object],[object Object],[object Object],B.   Capital  Account Capital transfers related to purchase and sale of fixed assets such as real estate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],E. Reserves and Related Items Changes in official monetary reserves including gold and foreign exchange reserves
BOP Accounting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Current Account ,[object Object],[object Object],[object Object],[object Object],[object Object]
For example… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Current Account US Current Account, 1997-1999 (US$ bn)
U.S. Trade Balance  vs. Balance on Services & Income,  1985-99 (US$ bn) Source: International Monetary Fund,  Balance of Payments Statistics  Yearbook, 2000 .
The Capital/Financial Account ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Capital/Financial Account ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Direct Investment Concerns ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Capital/Financial Account US Capital/Financial Account, 1997-1999 (billions of US$)
For example… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
US Financial Account, 1985-99 (US$ bn) Source: International Monetary Fund,  Balance of Payments Statistics Yearbook, 2000 .
Current & Financial/Capital Account Balances, US,  1992 - 1999 (US$ bn) Source: International Monetary Fund,  Balance of Payments Statistics Yearbook, 2000 .
The Other Accounts ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Balance of Payments in Total US Balance of Payments, Analytic Presentation, 1997-1999 Q: Why did FDI increase so much?
What if…? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Capital Mobility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Source: “Globalization and Capital Markets,” Maurice Obstfeld and Alan M. Taylor, NBER Conference Paper, May 4-5, 2001, p. 6. Capital Mobility Low High Capital Mobility 1880 1860 1900 1920 1940 1960 1980 2000 • • • • 1880 1900 1914 1860 Gold Standard 1880-1914 • • 1960 1971 Bretton Woods 1945-1971 • • 1980 2000 Float 1971-2000 • 1918 • Interwar, 1914-1945 1929 1925 • 1945 •
Capital Flight ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Where can I find this in … BOP? ,[object Object],[object Object]

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Bop

  • 1. The Balance of Payments (or chapter 3)
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. The Current Account US Current Account, 1997-1999 (US$ bn)
  • 10. U.S. Trade Balance vs. Balance on Services & Income, 1985-99 (US$ bn) Source: International Monetary Fund, Balance of Payments Statistics Yearbook, 2000 .
  • 11.
  • 12.
  • 13.
  • 14. The Capital/Financial Account US Capital/Financial Account, 1997-1999 (billions of US$)
  • 15.
  • 16. US Financial Account, 1985-99 (US$ bn) Source: International Monetary Fund, Balance of Payments Statistics Yearbook, 2000 .
  • 17. Current & Financial/Capital Account Balances, US, 1992 - 1999 (US$ bn) Source: International Monetary Fund, Balance of Payments Statistics Yearbook, 2000 .
  • 18.
  • 19. The Balance of Payments in Total US Balance of Payments, Analytic Presentation, 1997-1999 Q: Why did FDI increase so much?
  • 20.
  • 21.
  • 22. Source: “Globalization and Capital Markets,” Maurice Obstfeld and Alan M. Taylor, NBER Conference Paper, May 4-5, 2001, p. 6. Capital Mobility Low High Capital Mobility 1880 1860 1900 1920 1940 1960 1980 2000 • • • • 1880 1900 1914 1860 Gold Standard 1880-1914 • • 1960 1971 Bretton Woods 1945-1971 • • 1980 2000 Float 1971-2000 • 1918 • Interwar, 1914-1945 1929 1925 • 1945 •
  • 23.
  • 24.