1. The purchase of the answering machine is a current account debit for New York, and a current
account credit for New Jersey. When the New Jersey company deposits the money in its New York
bank there is a financial account credit for New York and a corresponding debit for New Jersey. If
the transactoin is in cash then the corresponding debit for New Jersey and credit for New York also
show up in their financial accounts. New Jersey acquires dollar bills (an import of assets from New
York, and therefore a debit item in its financial account); New York loses the dollars (an export of
dollar bills, and thus a financial account credit). Notice that this last adjustment is analogous to what
would occur under a gold standard
2. A current account deficit or surplus is a situation which may be unsustainable in the long run. There
are instances in which a deficit may be warranted, for example to borrow today to improve
productive capacity in order to have a higher national income tomorrow. But for any period of
current account deficit there must be a corresponding period in which spending falls short of income
(i.e. a current account surplus) in order to pay the debts incurred to foreigners. In the absence of
unusual investment opportunities, the best path for an economy may be one in which consumption,
relative to income, is smoothed out over time.
The reserves of foreign currency held by a country’s central bank change with nonzero values of its
official settlements balance. Central banks use their foreign currency reserves to influence exchange
rates. A depletion of foreign reserves may limit the central bank’s ability to influence or peg the
exchange rate. For some countries (particularly developing countries), central-bank reserves may be
important as a way of allowing the economy to maintain consumption or investment when foreign
borrowing is difficult. A high level of reserves may also perform a signaling role by convincing
potential foreign lenders that the country is credit-worthy. The balance of payments of a reservecurrency
center
인데.....경제학과 학생입니다. 저걸 번역해야되는데 요번에 복학하면서 영어공부를 많이 못해서 미흡하네요
저도 나름 해석을 했는데, 좀 정확하게 비교하고싶어서 질문 드립니다.
해석해주시면 혹시 필요하신분에 한해서 제가
빌보드 핫100이라든지, 드라이브하실때 좋은음악 제가 추려서 보내드릴께요..!