Unformatted text preview: International Monetary Economics
1st half of this course 3 main topics Balance of payments accounting Foreign exchange market Exchange rate determination Speculation & risk in foreign exchange International monetary system How international money flows affect the domestic economy Balance of Payments Accounting country's participation in the global economy analyzing country risk and economic performance linking international flows of goods and capital with aggregate domestic activity Balance of payments Residents 3 types Credits and Debits Credit: 2 complementary definitions (any transaction that take dollars from the hand of foreign residence into the Us ) Debit: 2 complementary definitions ( putting money into the hand of foreign residence ) Formats- national and IMF
residence Goods & Services Credits Merchandise Debits Merchandise exports (FOB- free on board or FAS- free as sign) Services Services (cif) Services imports Services of capital (interest & dividends) Transportation services Business services Royalties & payments for technology services Tourism Personal services of capital (interest & dividends) Transportation services Business services Royalties & payments for technology services Tourism Personal services Goods and Services 2008
Goods & Services Goods Services Travel Lic. & Royalty Income Dir....
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