TERM2
Date. Chepr 1: Gleked Imbalonas
=7 The ntxt: Glhal Imbalanos
-A Gluhal imtalona rater to the retuation whirs a te counties run
viery larse, pesistnt trode ditrents while other ron macthing surpla
- Masor debtui Us iumulatur curant account detiust 1loth Cl470-20173
- Creditors : These ditints tinonad by Japon (3.91a),Chna (3-91)ond bem
- lore qustion. why does the wold largtit ond richud tcnomy bolron hwuvity?
= Balanu ot paymunt
(7TA)
-a countys intinatinal tronsuctions secordd in Bop, o1 intinetion tionsostonw
- Bop has I main lumponinti:
1) luunt account: reprsient the nit flor ot imeumy from rest ot the woildwnsu
t tade bulana expor1- import
ineume balonu: ouus
inwme reuived tom byoud lintrert, dv dands)
of dumestic asset,
- incum paid to to,
is unilobral franskers: foreign did or remittonos Cgitty
2
Finerual account: recoids tansection of finenciel assets betreen residants ondaen
i net sols of assets: selling dumustie bonds to foreignes is ciedit (t)
nt purohass ol arseds: buning foreign stock is a dhit -)
- Duable entiy hookleceping: each tansuction enters trice ia Bop, ona untу
1 ond une with- (drbit &o ciedet)
- Fundamunlal identidg CA+ FAZO =7 CA= -FA
Thre is a third cemponen't in Bop: copital acsount.
"it keps Hord ot inbinetingl tontes ot finoncial cepital
·moin dlimunts are dibt forgivemss and myonts tonuter ot geeds
and finoroial asseds
• but quantitatinlg unimpoitont in nost countriss and we ignore il
=7(urrent account
- important figure in 1TA s the tode bolorld whch medoures the dift
betmesa enpord ot goods and sernas and import ot gouds and serias
•MRichardese oods) TB: exporl ot gouds- Import
Serna Bulunu
: erport ot gerus -imprd otsena
T6 Goodo Bolaru
+ Serica Balora
, Date.
•whon tod balona is igetive, ne say rovaty roas tol dihed
1B
• to compore sitl or signiticona of trude balera ot a cuontry
- Inwoi Balona mmaiares the ditt between factor ncom realid tam
the reil of the world nd facde. incrmu paid to the wodd
Turume Balonce et innestnt Balena + Wet Initerhutional Payma1 to
Empliyl
•nit income trom copital consist ot paymunts e.y. duidinds, ntrait pielit
Bada
• mt Incum trom labour,rewrd earnings ot Uk residint employed abcad tmp.
and cumpensuten paymunts to forcige limpocarily worlking in VK
In UK, US, ml intirnalimal payment to emplryee has been small
Net unilatral tansters, record dift betneen gift ceeived trom red
of the world and gitls given to rell ot the woild
• these gitts con Involue privch ogents or gout
Net unilowel trensters = personel rumittanos t guut tronste
• net unilalwal tanster in uk must yeurs regatine - Uk reridrts send
pusond rem.tlenus to relaliwes loang aboad and Uk gort send ad abrias
- 24 CA is nigolive ,atuns paribus, net externel dht9
Cn is pesiln, as parihus, it wtunal dehl &
Finoncial acconot
Cnet)
- Finuncial Acwunt = Incvevie in foreign vund assets in the UE-
C01Ј
Irareure n uk ouud astts abrrad
- double entry huokleping requires eving indernotinel tansections resalt eats
- Exomnu: Vk resedat purchese Coca colo. shars with &
Compod of ham)
Finonual au tentry Cesport ot E) and - in Ukoa ars bs
UK 18B ond LA
In 202u, vk can large CA dlicil o's tom
NIITB detier
-s unlerul tanstас
-UR been sinino ctcrt smu 1480 (erapt fow gears). Sina mid 2000,
CIt hes been more nigutive then 11 15.
, Date. /
=7 US 71B ond CA
- In 7074, Us ran a lenge CA ditiert. The bull shms fam TE ditigit
-The countyg hnd deticit in 11B on goods ond suiplas in 9718 in stivio.
-Net imirtmunt momm slghtly nigative
- Net unilated tranters wem mgutivs and abont Ito ot USGDP.
Thwe gittls an lagety pesunal ramillenos al immigionts in Us to H/os ob
- Us hae een rwnaing deticil for last 50 years.
7B ond CA similer in sin and move in tondm over thor
=7 19 ord CA acrss rantirs
- Counte, 1B and CA bond to move in londm, tIB assocate with ICA
- Observntiuns acruss countis & duta
CA= BB 1 Incom Balena 1 Nel Unilobal Iromta
China: R0 becaut. 7BLO. China reaive negetive nit lavestountintim
on a posilive nit foreign asnt pusition
CA 12
•Gemany! 70 becone 11870: Gumon re t Nt ndlount inimd en
+ u1 forlign uistt pusilicn
LA
. Nicarrgua: R 0 Ba becuan Not unilabal tents 70. Niingwa
reare nmiHanes equal to 14%. GPP, mustly us
• lonuda: od zapco becova Loco. () balona on wlntbinetional
cumpensation to empliyeus stemminy mainty noges pud by Canadion
residnts to us reuidinls cumrve to wark in lonada
ゆ0く丝
•Argentina:n God biwu IBCO. lage ret dibtur, intrert peyaunt high
- Imhalonas in tade with Chiry
• fructim ot us morchurdie trochk ditul accuuntd by dietats nth Chma ha
nidind hadily sinu Chira's decessin to WI0 2001 frm chut 201o in 200
to early so% by 2us
•by end ot somph, biletrel tach dticut fell siguiticorlle due to 2 pessible room
ConD-19 & tromp Tarift in 7018
Date. Chepr 1: Gleked Imbalonas
=7 The ntxt: Glhal Imbalanos
-A Gluhal imtalona rater to the retuation whirs a te counties run
viery larse, pesistnt trode ditrents while other ron macthing surpla
- Masor debtui Us iumulatur curant account detiust 1loth Cl470-20173
- Creditors : These ditints tinonad by Japon (3.91a),Chna (3-91)ond bem
- lore qustion. why does the wold largtit ond richud tcnomy bolron hwuvity?
= Balanu ot paymunt
(7TA)
-a countys intinatinal tronsuctions secordd in Bop, o1 intinetion tionsostonw
- Bop has I main lumponinti:
1) luunt account: reprsient the nit flor ot imeumy from rest ot the woildwnsu
t tade bulana expor1- import
ineume balonu: ouus
inwme reuived tom byoud lintrert, dv dands)
of dumestic asset,
- incum paid to to,
is unilobral franskers: foreign did or remittonos Cgitty
2
Finerual account: recoids tansection of finenciel assets betreen residants ondaen
i net sols of assets: selling dumustie bonds to foreignes is ciedit (t)
nt purohass ol arseds: buning foreign stock is a dhit -)
- Duable entiy hookleceping: each tansuction enters trice ia Bop, ona untу
1 ond une with- (drbit &o ciedet)
- Fundamunlal identidg CA+ FAZO =7 CA= -FA
Thre is a third cemponen't in Bop: copital acsount.
"it keps Hord ot inbinetingl tontes ot finoncial cepital
·moin dlimunts are dibt forgivemss and myonts tonuter ot geeds
and finoroial asseds
• but quantitatinlg unimpoitont in nost countriss and we ignore il
=7(urrent account
- important figure in 1TA s the tode bolorld whch medoures the dift
betmesa enpord ot goods and sernas and import ot gouds and serias
•MRichardese oods) TB: exporl ot gouds- Import
Serna Bulunu
: erport ot gerus -imprd otsena
T6 Goodo Bolaru
+ Serica Balora
, Date.
•whon tod balona is igetive, ne say rovaty roas tol dihed
1B
• to compore sitl or signiticona of trude balera ot a cuontry
- Inwoi Balona mmaiares the ditt between factor ncom realid tam
the reil of the world nd facde. incrmu paid to the wodd
Turume Balonce et innestnt Balena + Wet Initerhutional Payma1 to
Empliyl
•nit income trom copital consist ot paymunts e.y. duidinds, ntrait pielit
Bada
• mt Incum trom labour,rewrd earnings ot Uk residint employed abcad tmp.
and cumpensuten paymunts to forcige limpocarily worlking in VK
In UK, US, ml intirnalimal payment to emplryee has been small
Net unilatral tansters, record dift betneen gift ceeived trom red
of the world and gitls given to rell ot the woild
• these gitts con Involue privch ogents or gout
Net unilowel trensters = personel rumittanos t guut tronste
• net unilalwal tanster in uk must yeurs regatine - Uk reridrts send
pusond rem.tlenus to relaliwes loang aboad and Uk gort send ad abrias
- 24 CA is nigolive ,atuns paribus, net externel dht9
Cn is pesiln, as parihus, it wtunal dehl &
Finoncial acconot
Cnet)
- Finuncial Acwunt = Incvevie in foreign vund assets in the UE-
C01Ј
Irareure n uk ouud astts abrrad
- double entry huokleping requires eving indernotinel tansections resalt eats
- Exomnu: Vk resedat purchese Coca colo. shars with &
Compod of ham)
Finonual au tentry Cesport ot E) and - in Ukoa ars bs
UK 18B ond LA
In 202u, vk can large CA dlicil o's tom
NIITB detier
-s unlerul tanstас
-UR been sinino ctcrt smu 1480 (erapt fow gears). Sina mid 2000,
CIt hes been more nigutive then 11 15.
, Date. /
=7 US 71B ond CA
- In 7074, Us ran a lenge CA ditiert. The bull shms fam TE ditigit
-The countyg hnd deticit in 11B on goods ond suiplas in 9718 in stivio.
-Net imirtmunt momm slghtly nigative
- Net unilated tranters wem mgutivs and abont Ito ot USGDP.
Thwe gittls an lagety pesunal ramillenos al immigionts in Us to H/os ob
- Us hae een rwnaing deticil for last 50 years.
7B ond CA similer in sin and move in tondm over thor
=7 19 ord CA acrss rantirs
- Counte, 1B and CA bond to move in londm, tIB assocate with ICA
- Observntiuns acruss countis & duta
CA= BB 1 Incom Balena 1 Nel Unilobal Iromta
China: R0 becaut. 7BLO. China reaive negetive nit lavestountintim
on a posilive nit foreign asnt pusition
CA 12
•Gemany! 70 becone 11870: Gumon re t Nt ndlount inimd en
+ u1 forlign uistt pusilicn
LA
. Nicarrgua: R 0 Ba becuan Not unilabal tents 70. Niingwa
reare nmiHanes equal to 14%. GPP, mustly us
• lonuda: od zapco becova Loco. () balona on wlntbinetional
cumpensation to empliyeus stemminy mainty noges pud by Canadion
residnts to us reuidinls cumrve to wark in lonada
ゆ0く丝
•Argentina:n God biwu IBCO. lage ret dibtur, intrert peyaunt high
- Imhalonas in tade with Chiry
• fructim ot us morchurdie trochk ditul accuuntd by dietats nth Chma ha
nidind hadily sinu Chira's decessin to WI0 2001 frm chut 201o in 200
to early so% by 2us
•by end ot somph, biletrel tach dticut fell siguiticorlle due to 2 pessible room
ConD-19 & tromp Tarift in 7018
