标题: Family Guy [打印本页] 作者: BC_MBA_student 时间: 2011-7-13 16:41 标题: Family Guy
So let's say I am Peter Griffin and I just found out that I am the ruler of Petoria. My federal reserve bank holds a few foreign bonds and since we are running a huge trade deficit with our largest trading partner I decide to sell them to fill the 'gap'
Now I ask my son Stewie to calculate the 3 components of the balance of payment formula. How should he account for the sale of foreign bonds? Are they part of my capital account or official reserve?
I told him official reserve but I think I need some 'expert' advice...
Edited 1 time(s). Last edit at Tuesday, June 7, 2011 at 10:07AM by ZeroBonus.作者: random_walker47 时间: 2011-7-13 16:41
KSTHANE Wrote:
-------------------------------------------------------
> I was talking to a guy here at work about what the
> US can do to fix its current account deficit and
> he said that selling foreign bonds would be a
> capital account action...but I have no idea if
> he's correct.
That's true if individuals start selling them but what about the Fed. Is it still treated the same way?作者: wxs1986 时间: 2011-7-13 16:41
I agree w/ Paddy作者: jarobi04 时间: 2011-7-13 16:41
JamboRambo Wrote:
-------------------------------------------------------
> I agree w/ Paddy
i assumed by foreign bonds it meant bonds the fed bank was holding of other countries like how China own US treasuries....
so isn't that official reserves?作者: iteracom 时间: 2011-7-13 16:41
"Stewie should account for the sale of foreign bonds as part of the Official Reserves." is what Paddy said...作者: Analyze_This 时间: 2011-7-13 16:41
deleted
Edited 2 time(s). Last edit at Tuesday, June 7, 2011 at 03:41PM by gangsta.作者: ayodayo 时间: 2011-7-13 16:41
JamboRambo Wrote:
-------------------------------------------------------
> "Stewie should account for the sale of foreign
> bonds as part of the Official Reserves." is what
> Paddy said...
oh whoops
damn that stewie's dad, paddy and rambo all got +1作者: flyinggirl 时间: 2011-7-13 16:41
Early on in this century, official reserves assets were primarily gold. Now primarily financial assets denominated in a foreign currency that is widely accepted in international transactions: Pounds assets, U.S. dollar assets (key currency worldwide), Reserve positions in IMF and SDRs (created by IMF).作者: ningning1984 时间: 2011-7-13 16:41
Thanks tips作者: kkn006 时间: 2011-7-13 16:41
But yes, official reserves indeed. +1作者: spreads 时间: 2011-7-13 16:41
Selling bonds is current account action作者: ap0258 时间: 2011-7-13 16:41
We are talking about Federal Reserve selling foreign bonds from its repository. We are not referring to selling foreign bonds by ordinary citizen or an US Bank.
Federal Reserve selling foreign bonds held in its repository is counted in Official Reserves. This action brings in Dollars and out goes the foreign asset.
This will be a counter balance for the current account deficit.
Best of luck to you all in your forthcoming exams.作者: FinancialAnaly 时间: 2011-7-13 16:41
psriniva Wrote:
-------------------------------------------------------
> We are talking about Federal Reserve selling
> foreign bonds from its repository. We are not
> referring to selling foreign bonds by ordinary
> citizen or an US Bank.
>
> Federal Reserve selling foreign bonds held in its
> repository is counted in Official Reserves. This
> action brings in Dollars and out goes the foreign
> asset.
> This will be a counter balance for the current
> account deficit.
The balance of the official reserve was tiny in comparison
to massive dificit in current account. Investment account balance OTOH was close to dificit amount.
