tailieunhanh - Lecture International economics: Chapter 2 - Hendrik Van den Berg

Chapter 2 - The open economy. After completing this chapter, students will be able to: Review the simple circular flow diagram of a closed economy; illustrate how the closed economy circular flow diagram can be extended into an open economy circular flow diagram and all of its linkages with the rest of the world; explain the balance of payments accounts, which reflect the logic of the open economy circular flow diagram;. | International Economics and the Global Economy The international trading enhanced competition and nurtured what Joseph Schumpeter a number of decades ago called “creative destruction,” the continuous scrapping of old technologies to make way for the new. (Alan Greenspan, 2001) The Goals of This Chapter Review the simple circular flow diagram of a closed economy. Illustrate how the closed economy circular flow diagram can be extended into an open economy circular flow diagram and all of its linkages with the rest of the world. Explain the balance of payments accounts, which reflect the logic of the open economy circular flow diagram. Introduce foreign exchange markets and explain how foreign exchange rates are determined by the supply and demand for currencies, which are fundamentally related to the flows recorded in the balance of payments. Present the recent changes in the . balance of payments. Explain the net investment position of a country and how it is related to the balance of payments. The Circular Flow of an Economy An economy is a complex organism whose many elements engage in a variety of economic transactions. The circular flow diagram provides a simplified picture of all these economic transactions. A simplest version of an economy consists of households and producers. A more complete circular flow diagram adds a financial sector and a government. Note that the circular flow shows the directions of the flows of payments, not the direction of the flows of the goods or services paid for. The Basic Circular Flow of an Economy Individuals Producers C FP Adding Investment Goods (Capital Goods) Individuals Producers C FP I Adding Intermediate Goods Supplied Among Producers Individuals Producers C FP IG I Adding Transfers among Individuals Individuals Producers C FP IG I Tr Adding the Government to the Economy Individuals Producers C FP IG I Tr Government TXI TRI G TXP TRP Adding the Financial Sector fo the Economy Individuals Producers C FP . | International Economics and the Global Economy The international trading enhanced competition and nurtured what Joseph Schumpeter a number of decades ago called “creative destruction,” the continuous scrapping of old technologies to make way for the new. (Alan Greenspan, 2001) The Goals of This Chapter Review the simple circular flow diagram of a closed economy. Illustrate how the closed economy circular flow diagram can be extended into an open economy circular flow diagram and all of its linkages with the rest of the world. Explain the balance of payments accounts, which reflect the logic of the open economy circular flow diagram. Introduce foreign exchange markets and explain how foreign exchange rates are determined by the supply and demand for currencies, which are fundamentally related to the flows recorded in the balance of payments. Present the recent changes in the . balance of payments. Explain the net investment position of a country and how it is related to

• Kinh tế học
• International economics
• Lecture International economics
• The global economy
• The open economy
• International trade
• Current account
• International economics theory
• International economics policy
• International economics theory and policy
• International trade theory
• International trade policy
• Political economy of trade policy
• International investment
• Economics of international investment
• Intertemporal equilibrium
• Exchange rates
• Open economy macroeconomics
• National income accounting
• International financial system
• International financial orders
• The gold standard
• Economic model
• Economics policy
• Open economy
• Exchange rate
• Multi National Enterprises
• Portfolio investment
• International migration
• Supply side effects
• Immigration’s economic
• Controversial aspects of globalization
• International inequality
• Opportunities of globalization
• Partial equilibrium model
• Exchange rate changes
• Economic growth
• The power of compounding
• Bài giảng Kinh tế quốc tế
• The international economy
• The international globalization
• Waves of globalization
• International banking
• International reserves
• Automatic adjustment mechanisms
• Borrowed reserves
• Lecture Economics
• Environmental economics
• International finance
• Countries trade
• Comparative advantage
• International monetary economics
• World monetary arrangements
• Macroeconomic policy
• Principles of economics
• Lecture Principles of economics
• Capital flows
• International economy
• International EconomicsInternational economics
• Partial equilibrium models
• General equilibrium models
• Welfare effects
• General equilibrium effects
• Free trade
• General equilibrium effects of Trade
• Trade policy
• Trade expansion
• Trade creation
• Trade diversion
• Regional economic integration
• Foreign exchange market
• Foreign exchange
• Balance of payments
• Immigration policy
• Illegal immigration
• Immigration authorities
• General equilibrium model
• The gains from trade
• Opportunity costs
• Issues in economics today
• Lecture Issues in economics today
• Macroeconomic issues
• International issues
• Price control issues