首页 | 学习中心 | 注册 登录
返回列表 发帖
hanvinh

Rank: 2

UID
223209 
帖子
208 
主题
174 
注册时间
2011-7-11 
最后登录
2013-9-12 
1# 跳转到 » 倒序看帖
打印
tT
发表于 2013-3-31 12:56 | 只看该作者

2 Questions in Economics

decrease, government, positive, accounts, exchange
are these two comments correct or incorrect?
1) The real exchange rate of GBP per one USD can be interpreted as the UK real GDP per one unit of US real GDP.
2) The US balance of payments contains the official settlement accounts which show the changes in the government’s holding of foreign currencies. If the holding decrease, then the official settlements account balance would be positive.
收藏 分享

cv4cfa

Rank: 2

UID
223463 
帖子
346 
主题
15 
注册时间
2011-7-11 
最后登录
2013-8-23 
2#
发表于 2013-3-31 12:56 | 只看该作者
not v sure about first one. maybe correct
2nd statement is correct

TOP

Windjammer

Rank: 2

UID
222305 
帖子
379 
主题
21 
注册时间
2011-7-2 
最后登录
2015-12-5 
3#
发表于 2013-3-31 12:57 | 只看该作者
thanks. can you explain to me why the account balance would be positive? I thought it would be negative.

TOP

Chuckrox8

Rank: 2

UID
222284 
帖子
304 
主题
67 
注册时间
2011-7-2 
最后登录
2016-4-19 
4#
发表于 2013-3-31 12:57 | 只看该作者
yeah this is counter-intuitive but just remember ‘follow the cash’. CA + KA + OSA = 0. So say CA decreases 100 (i.e. net 100 cash has flowed out) and KA has increased 50 (i.e. net 50 has flowed in). Since 100 has flowed out and only 50 flowed in, the gov’t holdings of foreign currency will have to fall by 50. But if we plug in the -100 CA and +50 KA into the equation above, OSA has to be negative 50 to get it to balance. Hope this helps.

TOP

joehogue

Rank: 2

UID
222272 
帖子
301 
主题
72 
注册时间
2011-7-2 
最后登录
2014-6-28 
5#
发表于 2013-3-31 12:57 | 只看该作者
It wont let me edit… anyway, the mistake was hopefully obvious and I’ve fixed it up below.
yeah this is counter-intuitive but just remember ‘follow the cash’. CA + KA + OSA = 0. So say CA decreases 100 (i.e. net 100 cash has flowed out) and KA has increased 50 (i.e. net 50 has flowed in). Since 100 has flowed out and only 50 flowed in, the gov’t holdings of foreign currency will have to fall by 50. But if we plug in the -100 CA and +50 KA into the equation above, OSA has to be +50 to get it to balance. Hope this helps.

TOP

cfa10yrplan

Rank: 2

UID
222271 
帖子
295 
主题
67 
注册时间
2011-7-2 
最后登录
2014-6-29 
6#
发表于 2013-3-31 12:57 | 只看该作者
To answer the first question, the real FX rate is based on the nominal FX rate and the price levels in both countries. Not sure if the real GDP amounts for each country can be substituted for the price levels.
In the formula below I use direct quotations. So your example of “GBP per one USD” would be USD:GBP meaning that it’s from the perspective of a UK investor.
FX(real) = FX(nominal) x (price level foreign country / price level domestic country)
So say that USD:GBP = 0.60 pounds and that the price level in the UK was 100 and in the US it was 200, then we calculate FX real as
FX(real) = 0.60 x (200/100) = 1.2 pounds

TOP

Howd

Rank: 2

UID
222261 
帖子
274 
主题
71 
注册时间
2011-7-2 
最后登录
2013-11-4 
7#
发表于 2013-3-31 12:57 | 只看该作者
I haven’t seen these two topics covered in notes. Thanks, guys.

TOP

返回列表