11b+Economic+Growth_S11

11b+Economic+Growth_S11 - Old schedule Friday, April 1:...

Info iconThis preview shows pages 1–27. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Old schedule Friday, April 1: Quiz 7 New Schedule Friday, April 1: Lecture on Financial Crises Monday, April 4: Quiz 7 FINAL EXAM: Monday, May 2 @ 11:30-2:20-not much cumulativewill mostly cover materials after Quiz 8-studyguide will be provided-worth two quizzes Introduction to International Finance: The Big Picture Economic Growth Unemployment Inflation Balance of Payments (BOP) The Big Four: Internal Balance External Balance INFLATION ECONOMIC GROWTH UNEMPLOYMENT Internal Balance BALANCE OF PAYMENTS External Balance Conduct international trade Conduct international finance (borrow & lend money) Therefore they have: Current accounts (CA = exports imports) Capital accounts ( KAP = -CA) OPEN ECONOMIES BALANCE OF PAYMENTS KEEPS TRACK OF THESE OPEN ECONOMIES Current Account (CA) = (exports) (imports) = Net Exports (NX) = Trade balance Capital Account (KA) = (purchase of foreign assets by domestic residents) (purchase of domestic assets by foreigners) = Net Capital Outflows (NCO) CA = -(KA) or NX = NCO INFLATION ECONOMIC GROWTH UNEMPLOYMENT Internal Balance BALANCE OF PAYMENTS External Balance EXCHANGE RATE Internal Balance External Balance Exchange Rate Economic Growth Y = Output = Income A* f (L, K, H, N) Long-Run or Fundamental Determinants Economic Growth Y = A = technological progress L = labor K =capital (tools) H = skills (education) N = natural resources A* f (L, K, H, N) Y = Y = A* f (1, K , N , H ) L L L L Per capita economic growth! Long-Run or Fundamental Determinants Economic Growth GDP/Capita in 1900 (US = 100) 100 95 93 50 50 33 33 25 25 20 40 60 80 100 U S U K A u s t r a l i a F r a n c e G e r m a n y A r g e n t i n a C h i l e J a p a n M e x i c o Life in America, 1900 New York City, 1900 Georgia Drug Store, 1900 Georgia Train Station, 1900 Georgia Farm, 1900 Georgia Tech Classroom, 1900 Georgia Tech Presidents Office, 1900 Georgia Tech Library, 1900 Life for Average American, 1900 GDP (constant $US 2000) 5E+11 1E+12 1.5E+1 2 2E+12 2.5E+1 2 3E+12 1 9 6 1 9 6 2 1 9 6 4 1 9 6 6 1 9 6 8 1 9 7 1 9 7 2 1 9 7 4 1 9 7 6 1 9 7 8 1 9 8 1 9 8 2 1 9 8 4 1 9 8 6 1 9 8 8 1 9 9 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 2 2 2 2 4 2 6 2 8 China Switzerland South Korea GDP per capita (constant $US 2000) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 1 9 6 1 9 6 2 1 9 6 4 1 9 6 6 1 9 6 8 1 9 7 1 9 7 2 1 9 7 4 1 9 7 6 1 9 7 8 1 9 8 1 9 8 2 1 9 8 4 1 9 8 6 1 9 8 8 1 9 9 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 2 2 2 2 4 2 6 2 8 China Switzerland South Korea GDP per Capita $0 $5,000 $10,000 $15,000 $20,000...
View Full Document

Page1 / 63

11b+Economic+Growth_S11 - Old schedule Friday, April 1:...

This preview shows document pages 1 - 27. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online