ECON332 Lecture Notes - Gross Domestic Product, The Foreign Exchange, Capital Account
16 Mar 2013
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Document Summary
An analysis of the main issues in international finance. Topics include international borrowing and lending, intertemporal gains from trade, current account and balance of trade movements, the determination of exchange rates and foreign exchange markets. National income accounting and the balance of payments. Records all expenditures that contribute to country"s income and output. Keeps track of changes in country"s indebtedness to foreigners. Keeps change of fortunes of its export and import-competing industries. Shows connection between foreign transactions and national money supplies. Value of all final g&s produced by the country"s factors of production and sold on market in a given time period. Investment: amount put aside by private firms to build new plant and equipment for future use. Current account balance: amount of net exports of g&s to foreigners. Gnp over a time period must equal its national income (income earned in period by factors of production) More accurate measure of national income is gnp adjusted with:
