The Balance of Payments and International Economic Linkages

BALANCE-OF-PAYMENT CATEGORIES
Mengukur seluruh transaksi finansial dan transaksi ekonomi dalam periode tertentu Currency inflows = credits earn foreign exchange

Currency outflows = debits expend foreign exchange

Three Major Accounts:
a. b. c. Current Capital Official Reserves

BALANCE-OF-PAYMENT
The Balance-of-payment measures
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Basic Balance Net Liquidity Balance Official Reserve Transactions Balance

THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL

LINKS FROM INTERNATIONAL TO DOMESTIC FLOWS Global Linkages Sebuah set identitas dasar makroekonomi yang menghubungkan belanja domestik dan produksi dengan account current dan account capital.

THE INTERNATIONAL FLOW OF GOODS, SERVICES, AND CAPITAL

LINKS FROM INTERNATIONAL TO DOMESTIC FLOWS
Domestic Savings and Investment and the Capital Account
National Income Accounting
NI = C + S NS= C + I NI NS = S-I .(1)

NI >NS : Surplus modal yang dibelanjakan di luar negeri

THE LINK BETWEEN THE CURRENT AND CAPITAL ACCOUNTS

THE LINK BETWEEN THE CURRENT AND CAPITAL ACCOUNTS NI - NS = X - M X-M = Current Account (CA) Balance subtitusi NI-NS dengan (1) S-I=XM
S I = Net Foreign Investment (NFI)

NFI = X- M

THE LINK BETWEEN THE CURRENT AND CAPITAL ACCOUNTS

GOVERNMENT BUDGETS AND CURRENT ACCOUNT DEFICITS CA Balance = Saving Surplus - Govt budget deficit

COPING WITH THE CURRENT ACCOUNT DEFICIT

Currency Depreciation - Tidak efektif , membutuhkan waktu

- J-curve Theory

Protectionism
- Tariff - Quota

COPING WITH THE CURRENT ACCOUNT DEFICIT

Foreign Ownership
- Mengurangi kepemilikan aset domestik oleh pihak asing.

Stimulate National Saving

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