L-1 Macroeconomic Framework and Linkages
|
|
- Theodore Riley
- 5 years ago
- Views:
Transcription
1 L-1 Macroeconomic Framework and Linkages IMF Singapore Regional Training Institute OT Macroeconomic Diagnostics February 26 March 2, 2018 Presenter Stephan Danninger This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF courses. Any reuse requires the permission of the IMF.
2 2 Question: What are the IMF s 3 core mandates? A. conduct multilateral and bilateral surveillance, B. finance development projects, C. regulate the international monetary system D. lend to central banks E. deliver training and technical assistance F. finance global peacekeeping initiatives
3 Outline I. IMF macroeconomic surveillance II. Macroeconomic accounts III. Macroeconomic linkages IV. Article IV Staff Reports: structure/content 3
4 I. IMF Macroeconomic Surveillance 4
5 What is IMF macroeconomic surveillance? IMF surveillance oversees the international monetary system (multilateral) and the economic and financial situation and policies of its members (bilateral). The objective of this course is to present and demonstrate methods for evaluating the economic performance of an individual economy. Judgment matters. Bilateral surveillance focuses on a variety of assessments: growth (actual and potential) and inflation stance of monetary and fiscal policy assessment of the current account and exchange rate health of the financial sector macro-critical structural reforms
6 Key goals of IMF surveillance IMF Surveillance aimed at identifying economic risks Medical tests analogy: blood tests are critical to identifying health risks Like routine medical exams, IMF surveillance can be used to develop preventive policy measures as needed Surveillance == consultation
7 Key Objectives of Economic Policy High economic growth Macroeconomic stability Internal Balance A situation in which real output (or employment) is at or close to its capacity level and the inflation rate is low and stable. External Balance Current account position that can be sustained by capital flows on terms compatible with the growth prospects of the economy without resort to restrictions on trade and payments. 7
8 appreciation Internal and External Balance Framework (Swan s four zones of economic unhappiness) Real Exchange Rate Unemployment CA Deficit Internal balance (U=U * ) Unemployment CA Surplus Inflation CA Deficit Inflation CA Surplus External balance (CA=CA*) Real Domestic Demand 8
9 II. Macroeconomic Accounts 9
10 Macroeconomic Accounts Diagnostics of the state of the economy require: A system of macroeconomic accounts Understanding linkages between sectors Accurate economic information (reliable data is key!) 10
11 Four Standard Macro Accounts Real Sector External Sector Government Sector Monetary and Financial Sector National Accounts: Real Sector GDP and its components Balance of Payments (BOP): External Sector transactions with nonresidents Government aka Fiscal Sector or Public finances; government transactions, revenue and expenditures Depository Institutions: balance sheet of banking sector 11
12 Two additional accounts Government balance sheet Public sector debt level and maturity o Public Sector DSA Country s balance sheet External debt and International investment position o External debt DSA 12
13 IIa. National Accounts
14 National Accounts Real Sector Gross Domestic Product (GDP), as a standard broadest measure of the economy, can be measured as: 14
15 Key NA Definitions Gross National Income (GNI) GDP + Net Factor Income from abroad (Y F ) Gross National Disposable Income (GNDI) GDP + Net Factor Income (Y F )+ Net Transfers (TR F ) Gross National Saving (S) GNDI - C
16 IIb. Balance of Payments (BoP) External Sector 16
17 Balance of Payments Accounts: BOPM5 (presented usually in US$ or euros) Current Account Trade Exports Imports Services Income Interest Profits Wages Transfers (current) Capital and Financial Account Capital Account Financial Account Direct Investment Portfolio Investment Equity Debt Other Investment Net International Reserves Errors and Omissions 17
18 Balance of Payments Accounts: BOPM6 (presented usually in US$ or euros) Current Account (CAB) Trade Exports Imports Services Primary Income Interest Profits Wages Secondary Income, net Capital and Financial Account Capital Account Financial Account Direct Investment, net Portfolio Investment, net Equity Debt Other Investment, net in International Reserves Errors and Omissions 18
19 Key BoP Measure: Current Account Balance Current account balance (CAB): Guess the country: CAB = (X-M) + Y f + TR f CAS>0 CAD<0 X=Exports of goods and services M=Imports of goods and services Y f =Net factor income from abroad TR f =Net transfers from abroad
20 BoP and the Savings-Investment GAP Absorption approach to BOP Where A: Absorption = C+I CAB = GNDI - A That is: CAB = GNDI C I Since National Savings (S) = GNDI-C, it follows that: CAB = S - I 20
21 IIc. Fiscal Accounts 21
22 Government vs. Public Sector General Government 22
23 A Stylized Fiscal Account (local currency, flow data) Revenues Tax revenue Non-tax revenue Expenditures Current Capital Overall balance Financing Domestic financing (net) Banking system Nonbanking sector External financing (net) 23
24 GFSM 2001/14* REVENUE EXPENSE Primary Interest payments NET/GROSS OPERATING BALANCE NET ACQUISITION OF NON-FIN. ASSETS EXPENDITURE NET LENDING/BORROWING NET ACQ. OF FIN. ASSETS NET INCURRENCE OF LIABILITIES *Relevant to consider government coverage level (e.g., central, general, etc) For a detailed explanation of fiscal accounts, see the Government Finance Statistics Manual 2014: 24
25 Measures of Fiscal Balance Primary balance = overall balance (OB) + interest payments Cyclically-adjusted balance (CAB): OB adjusted for the effects of the business cycle Structural fiscal balance: CAB adjusted for one-off fiscal operations and other transient influences (e.g. asset and commodity prices) that are beyond the business cycle Public sector borrowing requirements Beware of contingent liabilities 25
26 IId. Monetary Accounts
27 Scope of the financial system Financial System (Financial Survey) Banking System (Monetary Survey) Other Financial Institutions (Consolidated Bal. Sheet of OFIs) Monetary Authorities (Balance Sheet of MA) Deposit Money Banks (Consolidated Bal. Sheet of DMBs)
28 Banking System (Monetary Survey) ASSETS Net Foreign assets (NFA) Net Domestic assets (NDA) Net credit to government (NCG) Credit to private sector (CPS) Other Items, net (OIN) Broad Money (M) LIABILITIES Narrow money (NM) Currency in circulation (CY) Demand deposits (DD) Quasi money (QM) Time & savings deposits (TD) Foreign currency deposits (FC) M = NFA + NDA 28
29 Cyclical adjustment of budget balance Case study: revenue is pro-cyclical: what is the underlying budget balance? 29
30 III. Linkages between accounts 30
31 Some examples of accounting links Exports and Imports in the real sector accounts (NIA) equal Exports and Imports in the external accounts (BOP) C G in real sector accounts = Current expenditure in fiscal sector accounts I G in real sector accounts (NIA) = Capital expenditure in fiscal sector accounts (GFSM) Reserves (change in net foreign assets) in external sector accounts (BOP) = Net foreign assets in MA part of monetary sector accounts Grants in the fiscal sector accounts (GSFM) = Official (not private ) part of net transfer TR F from abroad in NIA 31
32 REAL SECTOR National Accounts (local currency, flows) Private consumption General government consumption (Wages + Purchases of goods and services) Private investment General government investment Exports of goods and nonfactor services Imports of goods and nonfactor services EXTERNAL SECTOR Balance of Payments (US dollars, flows) CURRENT ACCOUNT Exports of goods and nonfactor services Imports of goods and nonfactor services Factor services (net) Transfers (net) Official Private CAPITAL & FINANCIAL ACCOUNT Direct investment Medium/long-term capital (net) Private sector Government Short-term capital (net) Private sector Government Overall balance Reserves (Change in net foreign assets) GENERAL GOVERNMENT Fiscal Accounts (local currency, flows) Revenues Grants Expenditures Current Capital Overall balance Financing Domestic financing (net) Banking system Nonbanking sector External financing (net) MONETARY SECTOR Monetary Auth (local curr., stocks) Net foreign assets Net domestic assets: Net credit to government sector Credit to banks Other items (net) Reserve money Currency Banks reserves DMBs (local currency, stocks) Net foreign assets Banks' reserves Net domestic assets: Net credit to government sector Credit to nongovernment sector Other items (net) Liabilities to monetary authorities Private sector deposits
33 Flow of Funds Presentation Schematic Flow of Funds Accounts Transactions/ Sectors Government Domestic Economy Private Sector Banking System Rest of the World Horizontal Check (1)= (2)+( 3) + (4) ( 2) ( 3) ( 4) ( 5) ( 1)+ (5) Gross National Disposable Income ( GNDI) + GNDI + GNDI g + GNDI p Final Consumption - C - Cg - Cp Gross Investment -I -Ig -Ip Exports of goods and nonfactor serv. Imports of goods and nonfactor serv. Net factor income Net Transfers - X M - Yf - TRf Saving Investment gap Non Financial Balances ( S-I) ( Sg-Ig) ( Sp-Ip) 0 - CAB 0 Foreign Financing Nonmonetary Financing Direct Investment FDI FDI -FDI 0 Net Foreign Borrowing NFB NFBg NFBp - NFB 0 Monetary Financing Change in Net Foreign Assets - NFA - NFA + NFA 0 Domestic Financing Monetary Financing Domestic Credit + NDCg + NDCp - NDC 0 Broad Money - M2 + M2 0 Nonmonetary Financing Non Bank NB -NB Net Errors and Omissions - OINd OINg OINp - OINb OINf 0 Vertical Check
34 The Flow of Funds Gaps and Financing Schematic Flow of Funds Accounts Transactions/ Sectors Government Domestic Economy Private Sector Banking System Rest of the World Horizontal Check (1)= (2)+( 3) + (4) ( 2) ( 3) ( 4) ( 5) ( 1)+ (5) Gross National Disposable Income ( GNDI) + GNDI + GNDI g + GNDI p Final Consumption - C - Cg - Cp Gross Investment -I -Ig -Ip Exports of goods and nonfactor serv. Imports of goods and nonfactor serv. Net factor income Net Transfers Non Financial Balances ( S-I) ( Sg-Ig) ( Sp-Ip) 0 - CAB 0 Foreign Financing Nonmonetary Financing Direct Investment FDI FDI -FDI 0 Net Foreign Borrowing NFB NFBg NFBp - NFB 0 Monetary Financing Change in Net Foreign Assets - NFA - NFA + NFA 0 Domestic Financing Monetary Financing Domestic Credit + NDCg + NDCp - NDC 0 Broad Money - M2 + M2 0 Nonmonetary Financing Non Bank NB -NB Net Errors and Omissions - OINd OINg OINp - OINb OINf 0 Vertical Check X M - Yf - TRf Gaps correspond to financing flows one-to-one. It all adds up. 34
35 What may cause macroeconomic instability? Exogenous factors: terms of trade shocks; changes in international interest rates, world-wide inflation or recession; financial contagion; supply shocks; political instability Inappropriate policies: over expansionary fiscal or monetary policy; exchange rate misalignment; excessive borrowing; inadequate financial regulation or supervision Structural rigidities: wage-price rigidities; structural rigidities in the trade and exchange system, government revenues and expenditures resulting in inefficient allocation of resources 35
36 IV. IMF Article IVs 36
37 IMF Article IV Consultations (bilateral surveillance) Article IV consultations normally take place once a year. IMF economists visit the member country to: Gather information Hold discussions with government and central bank officials, Meet with private investors and labor representatives, members of parliament, and civil society organizations. Upon its return, the mission submits an Article IV Staff Report to the IMF s Executive Board for discussion. The Board s views are subsequently summarized and transmitted to the country s authorities. 37
38 Structure of a Staff Report: Indonesia Article IV 2018: Main content 38
39 Structure of a Staff Report: Malaysia Article IV 2017: Boxes, Figures, Tables 39
40 SEI: Show Me the (significant) Vulnerabilities! Greece: Selected Economic Indicators, (Percentage change, unless otherwise indicated) Domestic economy Real GDP Total domestic demand Private consumption Public consumption Gross fixed capital formation Foreign balance (contribution) Exports of goods and services Imports of goods and services (Percent of GDP) Balance of payments Current account Trade balance Net international investment position Public finances (general government) Total revenues Total expenditures Primary expenditures Overall balance Primary balance Gross debt Interest rates and credit Long-term lending interest rate Private credit growth Sustained Negative Growth Sharp Declining Investment Chronic Current Account Deficit Trade Deficit (competitiveness) Chronic Fiscal Deficit Unsustainably High Debt High Credit Growth ( ) 40
41 Key takeaways Macroeconomic surveillance is the monitoring and analysis of the economic/financial situation (country or global) Key objectives of economic policy is strong and sustainable growth and macroeconomic stability Four macro sectors (real, external, fiscal, and monetary), which are linked via accounting and behavioral relationships Using the macro accounts we can analyze the underlying forces of the economy, including the impact of shocks Judgment matters. Article IV Staff report tables can reveal sources of weakness/vulnerabilities 41
Interrelations among Macroeconomic Accounts
Interrelations among Macroeconomic Accounts INTRODUCTION Macroeconomic statistics cover either: the whole economy (example : National Accounts) or a large and well-defined part of it (example : Government
More informationSession 2. The IMF's macroeconomic framework
Session 2. The IMF's macroeconomic framework 1. Overview of the Macro Framework Some takeaways Linkages between sectors and policies are critical Financial programming (FP) is a tool for ensuring accounting
More informationMacroeconomic Accounts and Policies: Financial Programming and Macro Interrelationships (*)
Macroeconomic Accounts and Policies: Financial Programming and Macro Interrelationships (*) World Bank/Poverty and Equity Summer University, Washington, DC, July 20-21, 2017 Alvaro Manoel International
More informationObjectives of the lecture
Assessing the External Position Bank Indonesia International Workshop and Seminar Central Bank Policy Mix: Issues, Challenges, and Policies Jakarta, 9-13 April 2018 Rajan Govil The views expressed herein
More informationL-6 Assessing the External Position
L-6 Assessing the External Position IMF Singapore Regional Training Institute OT 18.52 Macroeconomic Diagnostics February 26 March 2, 2018 Presenter Yoke Wang Tok This training material is the property
More informationThe Monetary and Financial Sector
The Monetary and Financial Sector Introduction What Does the Financial Sector Do? The financial sector intermediates and facilitates the resources flowing across economic sectors. The financial sector
More informationL-3 Analyzing Aggregate Demand
L-3 Analyzing Aggregate Demand IMF Singapore Regional Training Institute OT 18.52 Macroeconomic Diagnostics February 26 March 2, 2018 Presenter Natan Epstein Deputy Director, STI This training material
More informationDebt Sustainability Analysis at Subnational Level. Analytical Foundations
Debt Sustainability Analysis at Subnational Level Analytical Foundations Why DSA? Sustained economic growth...... a critical objective of macroeconomic policy... depends on a Sound Macroframework... which
More informationFinancial Programing and Policies, Part 2 Module 5
Financial Programing and Policies, Part 2 Module 5 Forecasting the Government Sector This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Institute
More informationCHAPTER 1 BASIC CONCEPTS IN MONETARY PROGRAMMING 1.1 Introduction The Central Bank of Nigeria is the institution vested with the responsibility for designing monetary policy which has to be consistent
More informationGlossary of Terms: Printable Format
IMFx: FPP.2x Financial Programming and Policies, Part 2: Program Design Glossary of Terms: Printable Format Term Sector Definition Acronym Absorption Real The sum of domestic expenditures on consumption
More informationFPPx Glossary Term Sector Definition Acronym
FPPx Glossary Term Sector Definition Acronym Absorption Real The sum of domestic expenditures on consumption and investment. A Consumer price index (CPI) Real A measure of the general level of prices based
More informationPRIVATE VERSUS PUBLIC SECTOR SAVING-INVESTMENT GAP IN THE MACEDONIAN ECONOMY A COMPARATIVE STUDY
PRIVATE VERSUS PUBLIC SECTOR SAVING-INVESTMENT GAP IN THE MACEDONIAN ECONOMY A COMPARATIVE STUDY Gjorgji Gockov, Elena Naumovska, Kiril Jovanovski, Ljupco Eftimov Ss. Cyril and Methodius University in
More informationMacroeconomic Diagnostics (MDSx) Module
Macroeconomic Diagnostics (MDSx) Module 7 Fiscal Policy This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Institute for Capacity Development
More information6 The Open Economy. This chapter:
6 The Open Economy This chapter: Balance of Payments Accounting Savings and Investment in the Open Economy Determination of the Trade Balance and the Exchange Rate Mundell Fleming model Exchange Rate Regimes
More informationBalance of Payments, Debt, Financial Crises, and Stabilization Policies
Chapter 9 Balance of Payments, Debt, Financial Crises, and Stabilization Policies Problems and Policies: international and macro 1 International Finance and Investment: Key Issues How major debt crises
More informationYangon, Myanmar February 16 27, Jan Gottschalk. IMF-TAOLAM training activities are supported by funding of the Government of Japan
Introduction Financial Programming and Policies Yangon, Myanmar February 16 27, 2015 Jan Gottschalk TAOLAM IMF-TAOLAM training activities are supported by funding of the Government of Japan Outline I.
More informationChapter 19. What Macroeconomics Is All About. In this chapter you will learn to. Key Macroeconomic Variables. Output and Income
Chapter 19 What Macroeconomics Is All About In this chapter you will learn to 1. Describe the meaning and importance of the key macroeconomic variables, including national income, unemployment, inflation,
More information6-8 September 2011, Manila, Philippines. Jointly organized by UNESCAP and BANGKO SENTRAL NG PILIPINAS. Country Experiences 1: ASEAN Economies
High-level Regional Policy Dialogue on "Asia-Pacific economies after the global financial crisis: Lessons learnt, challenges for building resilience, and issues for global reform" 6-8 September 2011, Manila,
More informationInvestment and its Financing: A Macro Perspective
G R O U P O F T W E N T Y Investment and its Financing: A Macro Perspective Annex to the G Surveillance Note Meetings of G Finance Ministers and Central Bank Governors February, 3 Prepared by Staff of
More informationChapter Two: How Fiscal Policy Affects the National Economy
Chapter Two: How Fiscal Policy Affects the National Economy Government economic activity affects a nation s economy, and viceversa. This chapter analyzes the impact of government economic policy, in particular
More informationPresentation. The Boom in Capital Flows and Financial Vulnerability in Asia
High-level Regional Policy Dialogue on "Asia-Pacific economies after the global financial crisis: Lessons learnt, challenges for building resilience, and issues for global reform" 6-8 September 2011, Manila,
More informationAppendix: Analysis of Exchange Rates Pursuant to the Act
Appendix: Analysis of Exchange Rates Pursuant to the Act Introduction Although reaching judgments about whether countries manipulate the rate of exchange between their currency and the United States dollar
More informationOVERVIEW OF CONCEPTS AND DEFINITIONS
OVERVIEW OF CONCEPTS AND DEFINITIONS Venkat Josyula Developing and Improving Sectoral Financial Accounts Algiers, January 20-21, 2016 The views expressed herein are those of the author and should not necessarily
More informationOpenness in goods and financial markets II. Balance of payments. Uncovered interest rate parity. Goods market equilibrium in the open economy.
Openness in goods and financial markets II Balance of payments. Uncovered interest rate parity. Goods market equilibrium in the open economy. Openness in financial markets: The purchase and sale of foreign
More informationThe Real Sector. Real sector refers to real economic transactions of an economy.
The Real Sector INTRODUCTION Real sector refers to real economic transactions of an economy. Main players: Households Non-financial corporations Financial corporations General government Rest of the world
More informationSAMPLE COURSE OUTLINE ECONOMICS ATAR YEAR 12
SAMPLE COURSE OUTLINE ECONOMICS ATAR YEAR 12 Copyright School Curriculum and Standards Authority, 2015 This document apart from any third party copyright material contained in it may be freely copied,
More informationREPORT FROM THE COMMISSION TO THE COUNCIL
EUROPEAN COMMISSION Brussels, 24.10.2017 COM(2017) 629 final REPORT FROM THE COMMISSION TO THE COUNCIL Commission report to the Council pursuant to article 11(2) of regulation EC 1466/97 on the enhanced
More informationUPDATES IN STATISTICAL FRAMEWORKS
Updates in Statistical Frameworks High level Meeting, Vladivostok, September 2014 Robert Dippelsman, Reproductions of this material, or any parts of it, should refer to the as the source. UPDATES IN STATISTICAL
More informationFoundations of Modern Macroeconomics Third Edition
Foundations of Modern Macroeconomics Third Edition Chapter 2: The open economy Ben J. Heijdra Department of Economics, Econometrics & Finance University of Groningen 13 December 2016 Foundations of Modern
More informationEcon 330 Final Exam Name ID Section Number
Econ 330 Final Exam Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A group of economists believe that the natural rate
More informationConsumption expenditure The five most important variables that determine the level of consumption are:
The aggregate expenditure model: A macroeconomic model that focuses on the relationship between total spending and real GDP, assuming the price level is constant. Macroeconomic equilibrium: AE = GDP Consumption
More informationSovereign Risk, Debt Management and Financial Stability
Monetary and Capital Markets Department Sovereign Assets and Liabilities Management Division Sovereign Risk, Debt Management and Financial Stability Udaibir S. Das Tunis, March 30, 2010 Outline Sovereign
More informationOverview. I. Monetary Statistics II. Money Creation III. Summary. Jan Gottschalk TAOLAM
Monetary Statistics & Money Supply Overview Jan Gottschalk TAOLAM This training material is the property of the IMF Singapore Regional Training Institute (STI) and is intended for the use in STI courses.
More informationMACROECONOMICS. Section I Time 70 minutes 60 Questions
MACROECONOMICS Section I Time 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best
More information1 Introduction. Purpose of the Guide. Scope of the Guide
1 Introduction Purpose of the Guide 1.1 The Balance of Payments and International Investment Position Compilation Guide (Guide ) is a companion document to the sixth edition of the Balance of Payments
More informationFinal Examination Semester 2 / Year 2012
Final Examination Semester 2 / Year 2012 COURSE : MACROECONOMICS COURSE CODE : ECON1013 TIME : 2 1/2 HOURS DEPARTMENT : MANAGEMENT LECTURER : CHING YANN PENG Student s ID : Batch No. : Notes to candidates:
More informationMANAGING CAPITAL FLOWS
MANAGING CAPITAL FLOWS Yılmaz Akyüz South Centre, Geneva Capital Account Regulations and Global Economic Governance Workshop Organized by UNCTAD and GEGI, Geneva, Palais des Nations, 3-4 October 2013 www.southcentre.int
More information1. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting:
1. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting: A. Fiscal policy B. Incomes policy C. Monetary policy D. Employment policy 2. When the Federal
More informationPrinciples of Macroeconomics Economics 202 Spring 2010
Principles of Macroeconomics Economics 202 Spring 2010 Dr. Stuart Allen 334-3166 Office Hours: Before Class Department Office 462 Bryan E-mail: stuart_allen@uncg.edu PURPOSE This course uses market analysis
More informationChapter 1: The Balance of Payments (BoP)
Chapter 1: The Balance of Payments (BoP) 2: Definition and Rules 2.1 Overview 2.2 Current Account 2.3 Capital Account 2.4 Financial Account 2.5 Balance-of-Payments Equilibrium 2.6 Net Errors and Omissions
More informationThe Global Economy and Viet Nam: Current Situation and Perspectives
2017/SOM1/EC/006 Agenda Item: 7c The Global Economy and Viet Nam: Current Situation and Perspectives Purpose: Information Submitted by: Central Institute for Economic Management First Economic Committee
More informationMacroeconomic policies in an open economy
Macroeconomic policies in an open economy We have seen that monetary and fiscal policies affect the interest rate (i) in the short run: expansionary MP reduce i and viceversa, while expansionary fiscal
More informationInstructions for Completing GFS Yearbook Questionnaire Report Forms for the Integrated Correspondence System (ICS)
Instructions for Completing GFS Yearbook Questionnaire Report Forms for the Integrated Correspondence System (ICS) The Statistical Tables in GFS Yearbook Questionnaire contains files in following format:
More informationGOVERNMENT FINANCE STATISTICS
August 2004 GOVERNMENT FINANCE STATISTICS THE GOVERNMENT FINANCE STATISTICS MANUAL 2001 FRAMEWORK AND ITS RELATIONSHIP WITH THE EUROPEAN SYSTEM OF ACCOUNTS 1995 JÓHANN R. BJÖRGVINSSON STATISTICS DEPARTMENT
More informationPrinciple of Macroeconomics, Summer B Practice Exam
Principle of Macroeconomics, Summer B 2017 Practice Exam 1) If real GDP in a small country in 2015 is $8 billion and real GDP in the same country in 2016 is $8.3 billion, the growth rate of real GDP between
More informationItem
Key Indicators for Asia and the Pacific 2010 POPULATION Total population a million; as of 1 July 8.6 8.8 9.0 9.5 10.0 10.5 11.0 11.6 12.1 12.3 12.5 12.7 12.9 13.1 13.3 13.5 13.6 13.8 14.0 14.2 Population
More informationBALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION
$Million BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION FOR THE QUARTER ENDED SEPTEMBER 2015 FAST FACTS Current account surplus/deficit The Bermuda current account recorded a surplus of $224 million
More informationUkraine. Systematic Country Diagnostic
For Discussion Only Ukraine Systematic Country Diagnostic Discussion October 2016 1 2 OUTLINE OUTLINE 1. New WBG Country Engagement Approach: What is an SCD? 2. Growth and Sustainability in Ukraine 3.
More informationThe Spanish economy in 2014
The Spanish economy in 2014 April 2014 World growth at differents speeds Forecasted real GDP growth in 2014 Changes in IMF forecasts for 2014 GDP growth since last summer Source: International Monetary
More informationTHE G-20 DATA INITIATIVE: Indonesia s Progresses and Challenges
THE G-20 DATA INITIATIVE: Indonesia s Progresses and Challenges Yati Kurniati Bank Indonesia Global Conference on the Data Gaps Initiatives (DGI) Washington DC, June 25-26, 2012 Outline : 1. THE G-20 DGI
More informationCHAPTER 8. FINANCIAL STATISTICS
CHAPTER 8. FINANCIAL STATISTICS CONTENTS PAGE I. Introduction...2 II. Framework and Scope of Financial Statistics...3 A. Flow Accounts...5 B. Stock Accounts...6 III. Compilation and Presentation of Financial
More informationECO 2013: Macroeconomics Valencia Community College
ECO 2013: Macroeconomics Valencia Community College Final Exam Fall 2008 1. Fiscal policy is carried out primarily by: A. the Federal government. B. state and local governments working together. C. state
More informationDisputes In Macroeconomics
No G G & T 3-5% Monetary Rule Expectations negate fiscal and monetary Policy. Adam Smith John M. Keynes Milton Friedman Classicals Keynesians Monetarists Robert Lucas Get the G off of our backs. Ronald
More informationA Look at the Macro Accounts
A Look at the Macro Accounts The MTDS aims at analyzing how to cover the government financing needs given the legacy debt and the new funding needs going forward. The medium-term fiscal accounts give a
More informationOutline of the Presentation
Outline of the Presentation I. Background on Fiscal Transparency a. What is Fiscal Transparency b. Why Fiscal Transparency Matters c. Background on the Global Fiscal Transparency Effort d. Progress in
More informationEcon 340. Recall Macro from Econ 102. Recall Macro from Econ 102. Recall Macro from Econ 102. Recall Macro from Econ 102
Econ 34 Lecture 5 International Macroeconomics Outline: International Macroeconomics Recall Macro from Econ 2 Aggregate Supply and Demand Policies Effects ON the Exchange Expansion Interest Rate Depreciation
More informationBALANCE OF PAYMENTS¹ of the Republic of Azerbaijan for January September, 2015
BALANCE OF PAYMENTS¹ of the Republic of Azerbaijan for January September, 2015 As in previous years, in January - September, 2015 external economic operations had positive balance on the oil-and-gas sector
More informationBasic macroeconomic concepts
Basic macroeconomic concepts in preparation for API-120 Prof. Jeffrey Frankel MPA/ID program August 2015 Lecture (i) -- GDP definitions Reading on growth accounting: Krugman, 1994, The Myth of the Asian
More informationGO ON TO THE NEXT PAGE. -8- Unauthorized copying or reuse of any part of this page is illegal.
30. Which of the following is most likely to be caused by an adverse supply shock? (A) Structural unemployment (B) Frictional unemployment (C) Demand-pull inflation (D) Cost-push inflation (E) Deflation
More information1. The short-run asset market approach model assumes A) fixed money supply B) fixed nominal exchange rate C) sticky price D) growing national income
1. The short-run asset market approach model assumes A) fixed money supply B) fixed nominal exchange rate C) sticky price D) growing national income 2. Which of the following is true regarding the money
More informationNew in 2013: Greater emphasis on capital flows Refinements to EBA methodology Individual country assessments
As in 212: Stock-take: multilaterally consistent assessment of external sector policies of the largest economies Feeds into Article IVs Draws on External Balance Assessment (EBA) methodology/other Identifies
More informationBalance of Payments and Exchange Rates. Ch12/BP&ER 1
Balance of Payments and Exchange Rates Ch12/BP&ER 1 Introduction: Open vs closed economy Three kinds of openness: Free trade in goods and services Restrictions:, etc. Free movements of capital (financial)
More informationFETP/MPP8/Macroeconomics/Riedel. General Equilibrium in the Short Run II The IS-LM model
FETP/MPP8/Macroeconomics/iedel General Equilibrium in the Short un II The -LM model The -LM Model Like the AA-DD model, the -LM model is a general equilibrium model, which derives the conditions for simultaneous
More informationEC 205 Lecture 20 04/05/15
EC 205 Lecture 20 04/05/15 Remaining material till the end of the semester: Finish Chp 14 (1 subsection left) Open economy version of IS-LM (Chp 6.1&6.3+13) Chp 16 OR Dynamic macro models (As time permits)
More information03104 Management and Business Economics Certificate in Accounting and Business I Examination March 2013
SUGGESTED SOLUTIONS 03104 Management and Business Economics Certificate in Accounting and Business I Examination March 2013 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA All Rights Reserved PAPER
More informationOVERVIEW OF MONETARY POLICY REGIMES. Jan Gottschalk, TAOLAM This activity is supported by a grant from Japan. Yangon October 2, 2014
OVERVIEW OF MONETARY AND EXCHANGE RATE POLICY REGIMES Yangon October 2, 2014 Jan Gottschalk, TAOLAM This activity is supported by a grant from Japan. Overview 2 I. Introduction II. Central Bank Objectives
More informationOverview: Financial Stability and Systemic Risk
Overview: Financial Stability and Systemic Risk Bank Indonesia International Workshop and Seminar Central Bank Policy Mix: Issues, Challenges, and Policies Jakarta, 9-13 April 2018 Rajan Govil The views
More informationWorld Economic Situation and Prospects asdf
World Economic Situation and Prospects 2016 asdf United Nations New York, 2016 Table of Contents xi Table of contents Acknowledgements... Explanatory notes... Executive summary... iii iv v Chapter I Global
More informationTopic 7: The Mundell-Fleming Model
Topic 7: The Mundell-Fleming Model Read: Ch.18.3-18.6. Outline: 1. Introduction. 2. The IS-LM-BP equilibrium. 3. Floating exchange rates 4. Fixed exchange rates. 5. The case of imperfect capital mobility
More informationInternational Monetary and Financial Committee
International Monetary and Financial Committee Thirty-Sixth Meeting October 13 14, 2017 Statement No. 36-33 Statement by Mr. Van Overtveldt Belgium On behalf of Republic of Armenia, Belgium, Bosnia and
More informationCourse: Economics I (macroeconomics) Study text. 14th Chapter. Open Economy. Author: Ing. Vendula Hynková, Ph.D.
Course: Economics I (macroeconomics) Study text 14th Chapter Open Economy Author: Ing. Vendula Hynková, Ph.D. 14 Open economy Nowadays national economies can not be considered as closed or without relation
More informationItem
Key Indicators for Asia and the Pacific 2015 1 POPULATION Total population a thousand; as of 1 July 387.0 397.8 409.0 418.6 428.5 438.5 448.8 459.4 470.1 481.2 492.5 504.0 515.9 528.0 540.4 553.1 566.0
More informationPublic Debt Management
The World Bank Public Debt Management Emre Balibek Senior Debt Specialist Macroeconomics and Fiscal Management Global Practice Structure Public Debt Management (PDM) Risks in PDMs Medium Term Debt Management
More informationStatement by Olli-Pekka Lehmussaari, Executive Director for the Republic of Estonia June 30, 2000
Statement by Olli-Pekka Lehmussaari, Executive Director for the Republic of Estonia June 30, 2000 Let me start by thanking the staff on behalf of my Estonian authorities and myself for their dedication
More informationGLOBAL IMBALANCES FROM A STOCK PERSPECTIVE
GLOBAL IMBALANCES FROM A STOCK PERSPECTIVE Ángel Estrada and Francesca Viani (*) 14 th EMERGING MARKET WORKSHOP Madrid (*) The views expressed here do not necessarily coincide with those of Banco de España
More informationDeveloping Countries Chapter 22
Developing Countries Chapter 22 1. Growth 2. Borrowing and Debt 3. Money-financed deficits and crises 4. Other crises 5. Currency board 6. International financial architecture for the future 1 Growth 1.1
More informationTable 1 below is from Sharmila Devadas & Norman Loayza (2018) When is a current account Deficit bad? World Bank Malaysia Hub, No, 17, October
ECON 3235 Fall 2018: Definitions and accounting behind Market for Dollars or Elasticities approach to External Adjustment (see also alternative Adjustment strategies here and at the end of this file).
More informationVIII. FINANCIAL STATISTICS
VIII. FINANCIAL STATISTICS INTRODUCTION 405. The financial statistics covered in this chapter have broader sectoral coverage than the monetary statistics described in Chapter 7. The scope of the monetary
More informationMalaysia. Real Sector. Economic recovery is gaining momentum.
Malaysia Real Sector Economic recovery is gaining momentum. Malaysia s economy grew 4.7% in the first three quarters of 23, well above the year-earlier pace of 3.7%. GDP rose 5.1% in the third quarter,
More informationChallenges to the International Monetary System: Rebalancing Currencies, Institutions, and Rates
Challenges to the International Monetary System: Rebalancing Currencies, Institutions, and Rates Takatoshi Kato Deputy Managing Director International Monetary Fund September 3, 27 1 9 Growth has been
More informationLahore University of Management Sciences. MECO 121 Principles of Macroeconomics
MECO 121 Principles of Macroeconomics Spring 2012-13 Instructor Room No. Office Hours Email Telephone Secretary/TA TA Office Hours Course URL (if any) Mr. Daud Ahmed Dard daud@lums.edu.pk Course Basics
More information2000 AP Macro Exam [with some 1995 & 1990 questions]
2000 AP Macro Exam [with some 1995 & 1990 questions] [*represents what percent of 23,000 students chose the correct answer] [Includes 59 questions from 2000 Macro exam, 35 from 1995 exam, and 6 from 1990
More informationMacroeconomics Study Sheet
Macroeconomics Study Sheet MACROECONOMICS Macroeconomics studies the determination of economic aggregates. Output tends to rise in the long run (longterm economic growth), but fluctuates in the short run
More information1. Do parts f and g after unit 3. Assume that the country of Fischerland produces only consumer goods and capital goods.
FRQ Packet These are all (or almost all) of the FRQ that the College Board has given in the past 10 years broken down by unit. The key to my previous AP students success has been the key to anyone s success
More informationInternational Monetary Fund Washington, D.C.
2010 International Monetary Fund April 2010 IMF Country Report No. 10/102 Republic of Equatorial Guinea: Statistical Appendix This Statistical Appendix for the Republic of Equatorial Guinea was prepared
More information1. The most basic premise of the aggregate expenditures model is that:
1. The most basic premise of the aggregate expenditures model is that: A. The total output produced in the economy depends directly on the level of total spending B. The level of employment in the economy
More informationA Preamble. Basic features of the data: Inspecting and plotting (trends, outliers, volatility) Basic descriptive summary statistics
A Preamble Basic features of the data: Inspecting and plotting (trends, outliers, volatility) Basic descriptive summary statistics Use judgment once a projection is obtained. Revise if necessary to ensure
More informationJapan's Balance of Payments Statistics and International Investment Position for 2016
Japan's Balance of Payments Statistics and International Investment Position for 16 July 17 International Department Bank of Japan Japan's balance of payments statistics for 16 -- the annually revised
More informationMankiw Chapter 10. Introduction to Economic Fluctuations. Introduction to Economic Fluctuations CHAPTER 10
Mankiw Chapter 10 0 IN THIS CHAPTER, WE WILL COVER: facts about the business cycle how the short run differs from the long run an introduction to aggregate demand an introduction to aggregate supply in
More informationMacroeconomic Theory and Stabilization Policy. Multiple Choice Problems [Select the best alternative]
1 Macroeconomic Theory and Stabilization Policy Module 1: Introduction Multiple Choice Problems [Select the best alternative] 1. In stagflation potential output of the economy declines. the inflation rate
More informationECON 3010 Intermediate Macroeconomics Chapter 6
ECON 3010 Intermediate Macroeconomics Chapter 6 The Open Economy Imports and exports of selected countries, 2010 60 50 Exports Imports Percent of GDP 40 30 20 10 0 Australia China Germany Greece S. Korea
More informationPractice Problems 30-32
Practice Problems 30-32 1. The budget balance is calculated as: A. T G TR B. T + G TR C. T G + TR D. T + G + TR E. TR T G 2. The government budget balance equals: A. Taxes + Government purchases + Government
More informationKeynesian Theory (IS-LM Model): how GDP and interest rates are determined in Short Run with Sticky Prices.
Keynesian Theory (IS-LM Model): how GDP and interest rates are determined in Short Run with Sticky Prices. Historical background: The Keynesian Theory was proposed to show what could be done to shorten
More informationThe U.S. Current Account Balance and the Business Cycle
The U.S. Current Account Balance and the Business Cycle Prepared for: Macroeconomic Theory American University Prof. R. Blecker Author: Brian Dew brianwdew@gmail.com November 19, 2015 November 19, 2015
More informationMacroeconomic Accounts and Policies: Introduction and Internal and External Balances(*)
Macroeconomic Accounts and Policies: Introduction and Internal and External Balances(*) World Bank/Poverty and Equity Summer University, Washington, DC, July 20-21, 2017 Alvaro Manoel International Consultant
More informationBALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION
BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION FOR THE QUARTER ENDED DECEMBER 2012 QUARTERLY FAST FACTS Current Account The Bermuda current account recorded a surplus of $189 million in the fourth
More informationBALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION
$Million BALANCE OF PAYMENTS & INTERNATIONAL INVESTMENT POSITION FOR THE QUARTER ENDED JUNE 2018 FAST FACTS Current Account The Bermuda current account recorded a surplus of $149 million in the second
More informationIntermediate Macroeconomics. Second Year
Q1: MCQ Intermediate Macroeconomics Open economy 1. Net exports are: Second Year Section (1) Revision A) that portion of consumption and investment goods sent to other countries. B) exports plus imports.
More information