课程名称：
国际金融
授课时间
第 4 周第 3-4 节
授课方式
理论课√ 讨论课□ 实验课□ 习题课□ 其他□
课时
2
授课题目（教学章、节或主题）：
第四章 国际收支的调节 Mechanisms of International Adjustment（学时：讲课 4）
4.1 价格调整 Price Adjustment （理解）
4.2 资本流动、利差 Financial Flows and Interest-Rate Differentials（理解）
4.3 收入调整 Income Adjustments（理解）
教学目的、要求：
The adjustment mechanism works for the return to equilibrium after the initial equilibrium has been
disrupted. Two forms of current-account adjustment: automatic adjustments and adjustments enabled by
discretionary government policies. This chapter emphasizes the automatic adjustment of the
current-account that occurs under a fixed exchange-rate system. The adjustment variables we will
emphasize include prices and income. The influence of interest rates on a country’s capital and financial
account will also be discussed.
教 学 基 本 内 容
方法及手段
1. Price Adjustment
多媒体
David Hume, a nation’s current account tends to move toward equilibrium
automatically.
案例
① gold standard: (pp.102)
实验
three conditions of classical gold standard (currency is gold or paper money backed by
gold, currency convertible to gold, free import and export of gold); current-account
surplus gold inflow money supply rises
讨论
modified gold standard (stock of money be fractionally backed by gold at a constant
ratio);
a fixed exchange-rate system (current-account disequilibrium financed by international
reserve asset and constant ratio between international reserves and money supply
maintained)
② quantity theory of money: equation of exchange MV=PQ (pp.102-103)
Q is fixed at full employment level in the long term; V is constant depending on
institutional, structural, and physical factors that rarely changed. With V and Q relatively
stable, a change in M must induce a direct and proportionate change in P.
Total monetary expenditures on final goods equals the monetary value of the final goods
sold; the amount spent on final goods equals the amount received from selling them.
③ current-account adjustment (pp.103)
Under the classical gold standard:
current
account
deficitgold
outflowmoney
supply
reducedprice
level
演示
习题
…
decreasesinternational competitiveness enhancedexports rise, imports fallcurrent
account equilibrium restored.
Demonstrate the impossibility of maintaining a continuous current account surplus.
④ major criticisms against the price-adjustment mechanism: (pp.103-104)
Linkage between a nation’s gold supply and its money supply no longer holds;
Full employment does not always exist;
Prices and wages are inflexible in downward direction;
The stability and predictability of V is questionable.
2. Financial flows and interest-rate differentials
Vast majority of capital-and-financial-account transactions come from financial
transactions. The most important factor causing financial assets to move across borders
is interest rate differential in domestic and foreign markets. Other factors include
investment profitability, national tax policies, political stability, etc. (pp.104)
Look at Figure 4.1, what induces movements along CFA schedule? What induces CFA0
schedule to move upward/downward to become CFA1? (pp.105)
① Interest rate differential between U.S. and the rest of the world induces movements
along the CFA schedule. If U.S. interest rate minus rest of the world interest becomes
positive (U.S. interest rate is higher than rest of the world), U.S. assets become more
attractive to international investors, thus more financial inflows to U.S, surplus in
capital-and-financial account.
② CFA schedule shifts upward/downward in response to changes in noninterest rate
determinants such as investment profitability, tax policies, and political stability.
Direct investment becomes more profitable (if, for example, lower corporate income tax
rate, rising productivity, lower labor costs), more financial inflows to U.S., upward shift
of CFA schedule;
Government policies discourage financial flows from U.S. to rest of the world, less
financial outflow from U.S., upward shift of CFA schedule.
作业和思考题：
作业：
思考题：
课程名称：
国际金融
授课时间
第 4 周第 5-6 节
授课方式
理论课□ 讨论课√ 实验课□ 习题课√ 其他□
课时
2
授课题目（教学章、节或主题）：
第四章 国际收支的调节 Mechanisms of International Adjustment（学时：讲课 4）
4.4 自动调节机制的缺陷 Disadvantages of Automatic Adjustment Mechanisms（理解）
4.5 货币调整 Monetary Adjustments（理解）
教 学 基 本 内 容
方法及手段
3. Income Adjustments
多媒体
① John Maynard Keynes, income adjustment mechanism, 1930s: under a system of
fixed exchange rates, income changes help restore a nation’s current-account
equilibrium automatically. (pp.106)
案例
Current-account surplusrising incomeimports increase current-account equilibrium restored
讨论
Current-account deficitsless incomeless imports  current-account equilibrium restored
② foreign repercussion effect (pp.106)
Consequences of foreign repercussion effect: both the rise in the income of the surplus
nation (Canada) and the fall in income of the deficit nation (U.S.) are dampened.
The size of the economy matters: a small nation that increases its imports from a large
nation will have little impact on the large nation’s income level. For major trading
partners, the foreign repercussion effect is likely to b significant and must be taken into
account when the income adjustment mechanism is being considered.
Example:
演示
实验
习题
…
U.S. buyers’
change
of
preferences
U.S. imports from
Canada
increase
and
Canada’s
exports increase
causes
a decrease
U.S. income
a fall of
U.S.
imports
in
a fall in
Canada’s
exports
an increase in
Canada’s income
a rise in
Canada’s
imports
a decrease in
Canada’s income
a rise in
U.S.
exports
an increase
U.S. income
in
4. Disadvantages of Automatic Adjustment Mechanisms
Central banks must forgo their use of monetary policy to promote the goal of full
employment without inflation. If automatic adjustments are allowed to operate,
reversing trade imbalances may come at the expense of domestic recession or price
inflation. Politically unacceptable. Modern nations are reluctant to make significant
internal sacrifices for the sake of external equilibrium.
Example:
1. face current-account deficit, allow income adjustment to restore equilibrium
income must decreasein conflict with monetary policy goal
2. face current-account surplus, allow price adjustment to restore equilibriumprice
level increase in conflict with monetary policy goal
5. Monetary Adjustment/ Monetary Approach to Balance of Payments, 1960s
Central notion: balance of payments is affected by discrepancies between demand for
money(Md) and domestic supply of money(D) (discrepancies between the amount of
money people desire to hold and the amount supplied by the central bank).
If Md < D, excess domestic supply of money flows outdeficit
Md > D, foreign supply of money flows insurplus
作业和思考题：
作业：Study Questions 3,4,6,7
思考题：How does price adjustment work under a fixed exchange-rate system?
（纸币）固定汇率下的自动调节：
发生国际收支逆差，本国货币贬值压力，货币当局干预，官方储备资产减少，……
增加出口竞争
力，减少进口
工资物价下降 需求
改善经常
项目收支