lect04272011

S gdp fiscal policy international terminology

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Unformatted text preview: 70s mid Current trade deficit about 5% of U.S. GDP Fiscal Policy International Terminology International Terminology Exchange Rates & NX QUICK conclusion 2 4/26/2011 8:48 AM Financial Capital Flows Trading of "non-productive" financial and physical "nonassets Trade Surplus (Financial) Capital inflows (K-In) (K (Financial) Capital outflows (K-Out) (K- (Financial) capital account deficit: K-Out > K-In KK- (Financial) capital account surplus: K-Out < K-In KK- Trade Deficit U.S. has capital account surplus Fiscal Policy International Finance International Terminology International Terminology Exchange Rates & NX QUICK conclusion Price of foreign currency is a price One determinant of EX and IM is Exchange Rates (XR) Pfx = U.S. $ price of 1 unit of foreign currency 82 Jap...
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This note was uploaded on 09/11/2012 for the course ECON 1 taught by Professor Martholney during the Spring '08 term at Berkeley.

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