LING 451 Lecture 9: Mar 29 LEC 9
9 Jun 2018
School
Department
Course
Professor
Final Ch. 7 - 10
but know 3 - 6 (60MC with 7 1 -2 SA Essay) + 1 long essay. 4 Multiple choice for bonus.
Just read through ch. 11
- concepts
• Open Economy Model
• IPC, PPP, Trilemma. (US, china, EURO, Japan don’t face trilemma)
• Applications
• Fixed/Float
• Gold std., BW, Hyper Globalisation
Fig 8.8 Global External Imbalances
• Henceforward 80s, flexible change doesn’t seem to fix trilemma. US imbalance is always in
negative and increasing. US is a consumption country (they don’t save)
Ch9: Global Capital Markets
• Aim: understand structure, 3 types of gains from trade, portfolio diversification, range of fin.
Assets, who are agents, Shadow Banking.
Ch. 10 Banks and Banking fidelity
• Banking is fragile system
• Asset and Liabilities
• Fragility causes gov't to deal and prevent the bank fails. (Banking insurances, capital requirement,
Bank exams, LOLR)
• Financial Trilemma (National control, Freedom of K, Financial Stability)
• International Regulation (Basel I, II, III - keep the Tier I, II, III capital)
Crisis
2008 crisis.
Document Summary
7 - 10 but know 3 - 6 (60mc with 7 1 -2 sa essay) + 1 long essay. Ipc, ppp, trilemma. (us, china, euro, japan don"t face trilemma: open economy model, applications. Fig 8. 8 global external imbalances: henceforward 80s, flexible change doesn"t seem to fix trilemma. Us imbalance is always in negative and increasing. Us is a consumption country (they don"t save) Ch9: global capital markets: aim: understand structure, 3 types of gains from trade, portfolio diversification, range of fin. 10 banks and banking fidelity: banking is fragile system, asset and liabilities. Fragility causes gov"t to deal and prevent the bank fails. (banking insurances, capital requirement, Financial trilemma (national control, freedom of k, financial stability) International regulation (basel i, ii, iii - keep the tier i, ii, iii capital)
