芬斯特拉版《国际宏观经济学》课后习题答案第5章

National and International Accounts: Income, Wealth, and the Balance of Payments 1.The following partial table of the OECDs 2004 ranking of member countries based on their GDP per capita. Compute the ratio of GNI to GDP in each case. What does this imply about net factor income from abroad in each country? Compute the GNI rankings of these countries. Are there any major differences between the GDP and the GNI rankings? What do these differences imply? Indicate? S-33 516 GDPGNI per Personper Person 1Luxembourg$64,843$53,299 2Norway$41,880$42,062 3United States$39,660$39,590 4Ireland$36,536$31,151 5Switzerland$34,740$37,638 6Netherlands$33,571$34,527 7Iceland$33,271$31,897 8Austria$33,235$32,843 9Australia$32,643$31,462 10Canada$32,413$31,751 11Denmark$32,335$32,232 12Belgium$31,985$31,675 13United Kingdom$31,780$32,470 14Sweden$31,072$31,007 15Germany$29,916$28,732 16Finland$29,833$30,361 17Japan$29,173$29,739 18France$29,006$29,287 19Italy$27,744$27,586 20Greece$27,691$27,412 21Spain$26,018$25,672 22New Zealand$24,834$23,205 23Slovenia$21,527$21,268 24Korea$20,723$20,771 25Czech Republic$19,426$18,314 26Portugal$19,324$19,029 27Hungary$16,519$15,548 28Slovak Republic$14,651$14,708 29Poland$13,089$12,511 30Mexico$10,145$9,989 31Turkey$7,212$7,186 S-34Solutions Chapter 5(16) National and International Accounts GDPGNI per RankingCountryGDP per PersonGNI per PersonGNI/GDP RatioRanking 1Luxembourg$64,843 $53,299 0.8221 2Norway$41,880 $42,062 1.0042 3United States$39,660 $39,590 0.9983 5Switzerland$34,740 $37,638 1.0834 6Netherlands$33,571 $34,527 1.0285 8Austria$33,235 $32,843 0.9886 13United Kingdom$31,780 $32,470 1.0227 11Denmark$32,335 $32,232 0.9978 7Iceland$33,271 $31,897 0.9599 10Canada$32,413 $31,751 0.98010 12Belgium$31,985 $31,675 0.99011 9Australia$32,643 $31,462 0.96412 4Ireland$36,536 $31,151 0.85313 14Sweden$31,072 $31,007 0.99814 16Finland$29,833 $30,361 1.01815 17Japan$29,173 $29,739 1.01916 18France$29,006 $29,287 1.01017 15Germany$29,916 $28,732 0.96018 19Italy$27,744 $27,586 0.99419 20Greece$27,691 $27,412 0.99020 21Spain$26,018 $25,672 0.98721 22New Zealand$24,834 $23,205 0.93422 23Slovenia$21,527 $21,268 0.98823 24Korea$20,723 $20,771 1.00224 26Portugal$19,324 $19,029 0.98525 25Czech Republic$19,426 $18,314 0.94326 27Hungary$16,519 $15,548 0.94127 28Slovak Republic$14,651 $14,708 1.00428 29Poland$13,089 $12,511 0.95629 30Mexico$10,145 $9,989 0.98530 31Turkey$7,212 $7,186 0.99631 Answer: See the following tables. To see the implications for net factor income, note NFIA ? GNI ? GDP.Therefore, if GNI/GDP ? 1, then GNI ? GDP, and NFIA ? 0. Similarly, if GNI/GDP ? 1, then NFIA ? 0. There are a few major differences in the rankings. A country with a high GDP ranking but low GNI ranking is likely to have a negative NFIA, and vice versa. Notice that Ireland is ranked 4th in GDP, but 13th in GNI per person. Indeed, a signifi cant portion of Irelands production is due to foreign factors of production and its NFIA ? 0. A similar situation holds for Australia, although to a lesser degree, whose rank in terms of GDP (9th) is higher than its GNI rank (12th). Both Switzerland and the United Kingdom are in the op- posite situation. Each country has a higher GNI ranking (United Kingdom7th, Switzerland4th) than GDP ranking (United Kingdom13th, Denmark5th). Both countries export more factors of production than they import, so NFIA ? 0. 2.Note the following accounting identity for gross national income (GNI): GNI ? C ? I ? G ? TB ? NFIA Using this expression, show that in a closed economy, gross domestic product (GDP), gross national income (GNI), gross national expenditures (GNE) are the same. Show that domestic investment is equal to domestic savings. Answer: Starting from the expression: GNI ? C ? I ? G ? TB ? NFIA Note that GNE? C ? I ? G. In a closed economy, TB? 0 ? NFIA.Therefore: GNI ? GDP ? C ? I ? G ? TB ? C ? I ? G? GNE From the previous expression: GNI ? C ? I ? G GNI ? C ? G? I S? I Or, using the current account identity, S ? I ? CA. In the closed economy, CA ? 0, so S ? I. Solutions Chapter 5(16) National and International Accounts S-35 GDPGNI/GDP per RankingCountryGDP per PersonGNI per PersonGNI/GDP RatioRanking 5Switzerland$34,740 $37,638 1.0831 6Netherlands$33,571 $34,527 1.0282 13United Kingdom$31,780 $32,470 1.0223 17Japan$29,173 $29,739 1.0194 16Finland$29,833 $30,361 1.0185 18France$29,006 $29,287 1.0106 2Norway$41,880 $42,062 1.0047 28Slovak Republic$14,651 $14,708 1.0048 24Korea$20,723 $20,771 1.0029 3United States$39,660 $39,590 0.99810 14Sweden$31,072 $31,007 0.99811 11Denmark$32,335 $32,232 0.99712 31Turkey$7,212 $7,186 0.99613 19Italy$27,744 $27,586 0.99414 12Belgium$31,985 $31,675 0.99015 20Greece$27,691 $27,412 0.99016 8Austria$33,235 $32,843 0.98817 23Slovenia$21,527 $21,268 0.98818 21Spain$26,018 $25,672 0.98719 26Portugal$19,324 $19,029 0.98520 30Mexico$10,145 $9,989 0.98521 10Canada$32,413 $31,751 0.98022 9Australia$32,643 $31,462 0.96423 15Germany$29,916 $28,732 0.96024 7Iceland$33,271 $31,897 0.95925 29Poland$13,089 $12,511 0.95626 25Czech Republic$19,426 $18,314 0.94327 27Hungary$16,519 $15,548 0.94128 22New Zealand$24,834 $23,205 0.93429 4Ireland$36,536 $31,151 0.85330 1Luxembourg$64,843 $53,299 0.82231 S-36Solutions Chapter 5(16) National and International Accounts 3.Show how each of the following would affect the U.S. balance of payments. Include a description of the debit and credit items, and in each case identify which specifi c account is affected (e.g., imports of goods and services, IM; exports of assets, EXA; and so on. For this question, you may fi nd it helpful to refer to Appendix 1.). a.A California computer manufacturer purchases a $50 hard disk from a Malaysian company, paying the funds from a bank account in Malaysia. Answer: b.A U.S. tourist to Japan sells his iPod to a local resident for yen worth $100. Answer: c.The U.S. central bank sells $500 million of its holdings of U.S. Treasury bonds to a British fi nancial fi rm and purchases pound sterling foreign reserves. Answer: d.A foreign owner of Apple shares receives $10,000 in dividend payments, which are paid into a New York bank. Answer: e. The central bank of China purchases $1 million of export earnings from a fi rm that has sold $1 million of toys to the United States, and the central bank holds these dollars as reserves. Answer: DescriptionBOP AccountAccount (detail)Credit/Debit Hard disk imported from MalaysiaCA () ?IM (), TB ()$50 Decrease in Malaysian deposits owned by U.S. fi rmFA ()?IMFA()?$50 DescriptionBOP AccountAccount (detail)Credit/Debit iPod exported to JapanCA () ?EX (), TB ()?$100 Increase in Japanese currency owned by U.S. touristFA ()?IMFA()?$100 DescriptionBOP AccountAccount (detail)Credit/Debit U.S. bonds sold to British fi rmFA () ?EXHA()?$500 mil. Pound-sterling reserves imported from BritainFA ()?IMFA()?$500 mil. DescriptionBOP AccountAccount (detail)Credit/Debit Import of factor service (ownership) from ROWCA () ?IMFS(), NFIA ()?$10,000 New York bank deposits paid to ROWFA ()?EXHA()?$10,000 DescriptionBOP AccountAccount (detail)Credit/Debit Import of toys from ChinaCA () ?IM (), TB ()?$1 mil. China central bank buys U.S. dollarsFA ()?EXHA()?$1 mil. Solutions Chapter 5(16) National and International Accounts S-37 f.The U.S. government forgives a $50 million debt owed by a developing country. Answer: 4. In 2010 the country of Ikonomia has a current account defi cit of $1 billion and a nonreserve fi nancial account surplus of $750 million. Ikonomias capital account is in a $100 million surplus. In addition, Ikonomian factors located in foreign countries earn $700 million. Ikonomia has a trade defi cit of $800 million. Assume Ikonomia neither gives nor receives unilateral transfers. Ikonomias GDP is $9 billion. a.What happened to Ikonomias net foreign assets during 2010? Did it acquire or lose foreign assets during the year? Answer: BOP ? CA ? FA ? KA ? 0 CA ? KA ? ?FA Current account defi cit of $1 billion ($1,000 million) and the capital account is in a $100 million surplus. ?$1,000 ? $100? ?FA FA ? $900 ? EXA? IMA The fi nancial account records fi nancial fl ows in to and out of the country. In this case, the FA surplus indicates that on net, foreigners purchased more Ikonomian assets than Ikonomians purchased foreign assets. Therefore, net foreign assets for Ikonomia declined by $900 million. b. Compute the offi cial settlements balance (OSB). Based on this number, what happened to the central banks (foreign) reserves? Answer:The fi nancial account can be split into those transactions conducted by the central bank (offi cial settlements balance) and those conducted by everyone else (nonreserve fi nancial account): FA ? Offi cial settlements balance ? Nonreserve fi nancial account Nonreserve fi nancial account is a $750 million surplus. $900 ? Offi cial settlements balance ? $750 Offi cial settlements balance ? $150 The offi cial settlements balance is in a $150 million surplus. This means that for- eign central banks purchased more Ikonomian assets (paid for with foreign cur- rency) than the Ikonomian central bank purchases of foreign assets (paid for with domestic currency, U.S. dollars in this case). Therefore, Ikonomias central bank experienced an increase in its foreign reserve holdings. DescriptionBOP AccountAccount (detail)Credit/Debit Debt forgiveness (gift)KA () ?KAOUT()?$50 mil. Decrease in external assets owned by U.S. entitiesFA ()?IMFA()?$50 mil. S-38Solutions Chapter 5(16) National and International Accounts c.How much income did foreign factors of production earn in Ikonomia during 2010? Answer:The current account can be split into three components: the trade bal- ance (fi nal goods and services), the net factor income from abroad (payments to/from factor services), and the net unilateral transfers. CA? TB ? NFIA ? NUT ?$1,000 ? ?$800 ? NFIA ? 0. In the question, we are given the trade balance (?$800 million) and the current account (?$1,000 million). NFIA ? ?$200. Net factor income from abroad is ?$200 million. This implies that foreign factors of production located in Ikonomia earned more than Ikonomian factors abroad. NFIA ? EXFS? IMFS. We know that Ikonomian factors abroad earned $700 million. ?$200 ? $700 ? IMFS IMFS? $900. Foreign factors located in Ikonomia earned $900 million. d.Compute net factor income from abroad (NFIA). Answer: See (c). NFIA ? ?$200 million. e.Using the identity BOP ? CA ? FA ? KA, show that BOP ? 0. Answer:To check our work, we can verify the BOP identity: BOP ? CA ? FA ? KA BOP? TB ? NFIA ? NUT ? FA ? KA BOP ? ?$800 ? ?$200 ? $0 ? $750 ? $150 ? $100 ? 0 f.Calculate Ikonomias gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI). Answer:We know that GDP ? C ? I ? G ? (EX ? IM) ? GNE ? TB GNE ? GDP ? TB GNE ? $9,000 ? (?$800) GNE ? $9,800 GNI ? GDP ? NFIA GNI ? $9,000 ? (?$200) ? $8,800 GNDI ? GDP ? NFIA ? NUT ? GNI ? NUT. Because NUT ? $0, GNDI ? GNI ? GNDI ? $8,800 Solutions Chapter 5(16) National and International Accounts S-39 5.To answer this question, you must obtain data from the Bureau of Economic Analysis (BEA), , on the U.S. balance of payment (BOP) tables. Go to in- teractive tables to obtain annual data for 2008 (the default setting is for quarterly data). It may take you some time to become familiar with how to navigate the website. You need only refer to Table 1 on the BOP accounts. Using the BOP data, calculate the follow- ing for the United States: (Answers will vary because of data revisions. The fi gures below are based on those given in the Table 5-3 16-3: release date Septermber 19, 2013.) a.Trade balance (TB), net factor income from abroad (NFIA), net unilateral trans- fers (NUT), and current account (CA) Answer: TB ? ?$702 billion (Line 74) NFIA ? ?$146 billion (Line 75) NUT ? ?$125 billion (Line 76) CA ? ?$681 billion (Line 77) b.Financial account (FA) Answer: FA ? ?$730 billion (Lines 40 ? 55 ? 70) c. Offi cial settlements balance (OSB), referred to as “U.S. offi cial reserve assets” and “Foreign offi cial assets in the U.S.” Answer: Offi cial settlements balance ? ?$550 billion (Lines 41 ? 56) d. Nonreserve fi nancial account (NRFA) Answer: Nonreserve fi nancial account ? $180 billion (Lines 40 ? 55 ? 70 ? 41 ? 56) e.Balance of payments (BOP). Note that this may not equal zero because of statis- tical discrepancy. Verify that the discrepancy is the same as the one reported by the BEA. Answer: BOP ? CA ? FA ? KA ? ?$681 ? $730 ? $6 ? $55 billion (statistical discrepancy ? ?BOP = $55 billion (Line 71) 6. Continuing from the previous question, fi nd nominal GDP for the United States in 2008 (you can fi nd it elsewhere on the BEA site). Use this information along with your previous calculations to calculate the following: (Answers will vary because of data revisions. The fi gures below use data from NIPA Table 1.1.5 as revised on September 26, 2013. It reports GDP = $14,720 billion.) a.Gross national expenditure (GNE), gross national income (GNI), and gross na- tional disposable income (GNDI) Answer: We use the GDP reported above along with the data used in answer- ing the previous question. GNE ? GDP ? TB ? 14,720 ? (?702) ? $15,422 billion; GNI ? GDP ? NFIA ?14,720 + 121 ? $14,841 billion; GNDI ? GNI ? NUT ? $14,841 ? 125 ? $14,716 b.In macroeconomics, we often assume the U.S. economy is a closed economy when building models that describe how changes in policy and shocks affect the economy. Based on the previous data (BOP and GDP), do you think this is a reasonable as- sumption to make? Do international transactions account for a large share of total transactions (involving goods and services, or income) involving the United States? Answer: Based on calculations above, we see that GDP ? $14,720 billion, whereas the trade balance accounts for slightly less than 5% (TB ? ?$702 bil- lion). Similarly, if we compare the share of GNI ($14,841 billion) that is attrib- uted to the current account (CA ? $681 billion), we can see that international transactions account for a relatively small share (about 4.5%) of U.S. income. Therefore, the assumption of a closed economy is not too problematic. S-40Solutions Chapter 5(16) National and International Accounts 7. During the 1980s, the United States experienced “twin defi cits” in the current ac- count and government budget. Since 1998, the U.S. current account defi cit has grown steadily, along with rising government budget defi cits. Do government bud- get defi cits lead to current account defi cits? Identify other possible sources of the cur- rent account defi cits. Do current account defi cits necessarily indicate problems in the economy? Answer: “Twin defi cits” are possible, but there are other factors that infl uence the current account. Since 1998, the decline in the current account has been associated with movements in investment and national savings. Note the following expression from the textbook: CA? SP? SG? I It is not clear that budget defi cits cause current account defi cits. There are two pos- sibilities besides a budget defi cit (SG? 0): Private savings (SP) may change when the government changes taxes (e.g., tax rates). Suppose tax rates decrease, causing a decrease in government saving. Ac- cording to Ricardian equivalence, households will respond to a tax cut today by increasing savings in anticipation of a future tax increase needed to fi nance the current budget defi cit. This implies private savings will increase, possibly offset- ting the effect on national saving. The current account may move independently of saving, namely because of changes in investment (I). An increase in domestic investment opportunities could lead to current account defi cits. 8.Consider the economy of Opulenza. In Opulenza, domestic investment of $400 mil- lion earned $20 million in capital gains during 2012. Opulenzans purchased $120 million in new foreign assets during the year; foreigners purchased $160 million in Opulenzan assets. Assume the valuation effects total $1 million in capital gains. Note that we need to assume a value for the capital account. We will assume KA ? 0 in the following transactions. a.Compute the change in domestic wealth in Opulenza. Answer: The change in domestic wealth is the sum of additions to the capital stock plus capital gains earned on domestic assets: Change in domestic wealth ? I ? Capital gains on K ? $400 ? $20 ? $420 million b.Compute the change in external wealth for Opulenza. Answer:The change in external wealth is: W ? Valuation effects ? (?FA) ? $1 ? ($160 ? $120) ? $39 million c.Compute the total change in wealth for Opulenza. Answer:The change in total wealth is: Change in total wealth ? Change in domestic wealth ? Change in external wealth ? $420 ? (?$39) ? $381 million d.Compute domestic savings for Opulenza. Answer:To calculate national savings, note that the change in total wealth is: Change in total wealth ? S ? KA ? Capital gains on K ? Capital gains on (A ? L) $381 ? S ? $0 ? ($20 ? $1) S ? $360 million Solutions Chapter 5(16) National and International Accounts S-41 e. Compute Opulenzas current account. Is the CA in defi cit or surplus? Answer: Using the current account identity: S ? I ? CA: S ? I ? CA $360 ? $400 ? CA CA ? ?$40 million Or, we could use the defi nition of the change in total wealth: Change total wealth ? I ? (CA ? KA) ? Capital gains on K ? Capital gains on (A ? L) $381 ? $400 ? CA ? $0 ? $20 ? $1 CA ? ?$40 million f. Explain the intuition for the CA defi cit/surplus in terms of savings in Opulenza, fi nancial fl ows, and its domestic/external wealth position. Answer: We see that Opulenza experienced a $420 million increase in its do- mestic wealth while losing $39 million in external wealth. Opulenzas investment is $400 million of which $360 million was fi nanced through domestic savings and $40 million fr