2 Impact of deficit: China's economic growth is blocked, which is not conducive to foreign economic exchanges and damages its international reputation.
The impact of surplus: the continued strength of the local currency leads to inflation, which is not conducive to the development of international economic relations.
3 means to maintain a fixed exchange rate: 1, use gold foreign exchange reserves, 2, use discount policy, 3, use foreign exchange control means, 4, borrow foreign debts or sign currency swap agreements, 5, implement legal devaluation.
4 reasons for agreeing to a fixed exchange rate system A A fixed exchange rate system is conducive to promoting trade and investment; B fixed exchange rate system provides self-discipline for a country's macroeconomic policy; A fixed exchange rate system helps to promote international economic cooperation. Speculation under the floating exchange rate system may be unstable.
Reasons for floating exchange rate system floating exchange rate system can ensure the continuous balance of international payments; Floating exchange rate system can ensure the autonomy of monetary policy; Floating exchange rate system can isolate the impact of external economic shocks. Floating exchange rate system helps to promote economic stability. Private speculation under the floating exchange rate system is stable.
5 the choice of exchange rate system: a structural characteristics of domestic economy b specific policy objectives c regional economic cooperation d constraints of international and domestic economic conditions.
Currency board system. The first is the currency issuance system. The law stipulates that the currency issued by the authorities must be fully supported by foreign exchange reserves or hard currency; Secondly, the exchange rate system ensures that local currency and foreign currency can be exchanged at a predetermined exchange rate without restriction when necessary.
Advantages and disadvantages of currency board: it is beneficial to the development of international trade and investment, and it is not easy to isolate the influence of external shocks. Countries that implement the currency board system have completely lost the independence of monetary policy, and the fixed exchange rate under the currency board system is easy to lead to speculative attacks.
8 dollarization: refers to a country's residents holding a considerable part of foreign currency assets (mainly US dollars) in their assets, and a large number of US dollars have entered the circulation field, which has all or part of the functions of money and has a tendency to gradually replace the domestic currency as the main medium of economic activities in the country. Therefore, dollarization is essentially a narrow or deep currency substitution phenomenon.
Advantages Full dollarization helps to eliminate foreign exchange risks, reduce transaction costs, promote the development of trade and investment, and promote integration with the international market. B helps to avoid international speculative attacks, C helps to restrain government behavior and avoid hyperinflation, and D helps to improve the credibility of currency and provide guarantee for long-term financing.
Disadvantages: A dollarization countries will lose a lot of seigniorage, B dollarization countries will lose the independence of monetary policy, and C dollarization countries' lender of last resort ability will be limited to some extent.
10 foreign exchange control gains 1. Protect domestic industries. Keep the currency stable or make the exchange rate change develop in a direction beneficial to the domestic economy. Prevent large inflows or outflows of capital. Promote the implementation of domestic fiscal and monetary policies. Benefit from the political and economic intentions of the government.
Cost: 1 reduces the effective allocation and utilization of resources. It hinders the normal development of international trade and is not conducive to the effective absorption and utilization of foreign capital. It is not conducive to establishing a normal price relationship and enhancing the competitiveness of enterprises. It increases transaction costs and management costs. This has also increased international trade friction.
1 1 International reserves refer to all internationally recognized assets held by a government to make up the balance of payments deficit and maintain the local currency exchange rate. It is characterized by availability, liquidity and universal acceptance.
International liquidity refers to the ability of a government to finance its balance of payments deficit. It includes not only a country's realistic ability to finance its balance of payments deficit, that is, international reserves, but also its potential financing ability, that is, the maximum possible ability of a country to borrow from abroad.
13 international reserve structure: 1. Self-owned reserves: gold reserves, foreign exchange reserves, reserve positions of the International Monetary Fund and special drawing rights. Two. Loan reserve: standby credit, mutual credit agreement, general loan arrangement, short-term convertible monetary assets of domestic commercial banks abroad.
14 the role of international reserves: make up the balance of payments deficit, adjust the exchange rate of local currency, act as credit guarantee and prevent emergencies.
15 The positive impact of reserve currency diversification: A relieves Triffin's dilemma, B promotes the coordination of monetary policies among countries, and C helps to prevent exchange rate risks. Negative effects: A increases the difficulty of managing the quantity and structure of reserves, B intensifies the turmoil in the international foreign exchange market, and C deepens the instability of the international monetary system.
16 the necessity of international reserve structure management: exchange rate risk ii. Interest rate risk. Gold price risk.
17 conditions for the formation of international financial markets. Political stability; 2. There is no foreign exchange control or loose foreign exchange system, free foreign exchange trading and flexible capital allocation. 3. Relatively perfect financial system and financial institutions; Excellent geographical location, convenient traffic conditions and modern international communication facilities, with a professional team with high international financial knowledge and rich experience.
The function of 18: it is beneficial to adjust the imbalance of international payments between countries; Second, it is conducive to promoting the development of international trade and the flow of international capital; 3. It is conducive to promoting the internationalization of production and capital; It promotes the internationalization of financial business.
19 Reasons for the formation of European money market: Roots: Internationalization of production and capital 1 East-West Cold War 2 Pound crisis is an important condition for the formation of eurodollar market 3 American government's control over domestic banking activities 4 Western European countries' deregulation of foreign exchange 5 exchange rate fluctuations and financial market turmoil 6 The influence of the Organization of Petroleum Exporting Countries.
Features: less control, free operation, large number of transactions, fast turnover, fast fund allocation, price sensitivity, high deposit interest rate and low loan interest rate; It is very attractive to depositors and lenders, with low tax burden, diverse currencies, wide sources of funds, convenient geographical location and large proportion of inter-bank transactions.
The influence of European money market on the world economy: 1. It injected funds into the recovery of the world economy after World War II and promoted the economic development of Western Europe, Japan and many developing countries after World War II. The European money market has accelerated the development of international trade. It helps to adjust the imbalance of international payments. It promotes the integration of international financial markets, the flow of international capital and the development of financial innovation.
Negative effects: a, the international financial system has become more fragile; B, to a certain extent, weakened the effectiveness of national monetary policies; Foreign exchange speculation in European money markets has intensified exchange rate fluctuations.
2 1 The characteristics of derivatives traded on the exchange: standardized terminology, standard contract amount, standard delivery date, standard trading procedures, low cost and high liquidity.
OTC: Adapt to customers' needs, tailor liquidity, low cost and high counterparty risk.
Characteristics of medium and long-term loans in Europe: loan agreements must be signed, interest rates can be flexibly determined, and joint loans are needed. Some loans need to be guaranteed by official institutions or the borrower's government.
Role of foreign exchange: 1. As a means of pricing and payment for international settlement, it promotes international settlement. 2. The international transfer of purchasing power can be realized through international exchange, which makes the currency circulation between countries possible. It promotes the development of international trade and investment. 4. It is conducive to regulating the supply and demand of international funds and promoting the development of international financial markets. 5. Foreign exchange reserves are international reserves and play a role in balancing international payments. 6. Save the circulation cost and make up for the shortage of circulation means.
Key currencies should have the following characteristics: ① they are most used in the country's balance of payments; ② It accounts for the largest proportion in foreign exchange reserves; ③ It is freely convertible and internationally recognized.
Option trading features: 1) The option fee (insurance premium) under the option business cannot be recovered. (2) The premium rate of option business is not fixed. (3) Be selective and flexible when executing or not executing the contract.
26 foreign exchange options VS foreign exchange futures VS forward foreign exchange transactions are all foreign exchange transactions, and the three trading methods are both related and different. Forward foreign exchange transactions and forex futures trading have the same characteristics, that is, they avoid exchange rate risks and eliminate the possibility of profiting from exchange rate fluctuations. However, foreign exchange options trading can not only avoid the losses caused by exchange rate fluctuations, but also retain the opportunity to profit from exchange rate fluctuations, making up for the shortcomings of the former two.
Characteristics of international capital flow: 65,438+0 The demand for capital in developed countries is rising; Transition countries and emerging market countries and regions have strong demand for funds; The trend of international capital securitization is strengthening; The scale of international hot money continues to expand; The sectoral structure of international capital flows is changing; International direct investment has developed rapidly and its regional distribution is constantly changing.
Medium-and long-term capital flow has a positive impact on capital exporting countries: it can increase the marginal income of capital; Can drive the export of goods and services; Help to improve international status; The negative effects are as follows: it may hinder the development of domestic economy; It is easy to cultivate potential competitors. (2) The positive impact on capital importing countries is: it can alleviate the shortage of funds in importing countries; Improve the level of industrialization; Increase employment opportunities; The negative effects are as follows: affecting the autonomy of economic development; May cause a heavy debt burden; Plunder resources.
The internal cause of the international debt crisis: 1 blindly borrowing a lot of foreign debts and unrealistically pursuing high-speed economic growth. 2. Debtor countries lack effective macro-control over foreign debts, and their management is chaotic. 3 improper foreign debt investment, low investment efficiency and exchange rate creation. External factors: the world economic recession led by developed countries in the early 1980s, the floating interest rate and exchange rate of the US dollar in the international financial market, and the two oil price rises have expanded the import expenditure of non-oil-producing developing countries.
30. 1 When developing countries borrow foreign debts, they should choose the appropriate borrowing scale according to their national conditions. 2. The foreign debt structure should be arranged reasonably according to the specific situation. 3. Cultivate and develop export industries, improve repayment ability and achieve stable and coordinated development. 4. Establish centralized and unified foreign debt management institutions and strengthen foreign debt management.
3 1 international speculative capital, or hot money, refers to short-term capital that frequently flows between markets in pursuit of short-term high profits without fixed investment fields. The connotation of international speculative capital: ① In terms of terms, international speculative capital refers to "short-term capital", so people also call it "hot money" figuratively; ② From the motive, international speculative capital pursues short-term high profits; ③ From the scope of activities, international speculative capital has no fixed investment field, but flows rapidly in various financial markets; International speculative capital refers to short-term capital flowing in the international financial market, not domestic hot money.
Characteristics of financial globalization: 1 The exchange rate system tends to be consistent. 2. The boundaries of various financial markets gradually disappear, and the prices of financial products tend to be consistent. 3. Uniform rules of international finance continue to emerge. Financial market turbulence will become more frequent. 3. New features of speculative shocks since 1980s.
1 The scale and influence of speculative shocks are increasing, the scale of capital is increasing, and capital is becoming "collectivized" day by day. The development of financial derivatives provides speculators with a means of leveraged trading. 2. Speculative shock strategy is becoming more and more three-dimensional. 3. The speculative impact surface is becoming more and more regional. 4. Speculative impact activities are becoming more and more open. 5. Speculators are paying more and more attention to the expectation of depreciation and the crisis of confidence in the market.
The role of the Bretton Woods system: 1 solved the shortage of gold production in the world, and the increase in dollar issuance made up for the lack of international liquidity; 2. The stability and flexibility of exchange rate promote the development of international trade, investment and credit; 3.3IMF loans and financing make room for temporary deficit; 4. Member States have relative economic autonomy; 5. It cancels the forum for consultation and coordination among member countries, and achieves internal and external balance.