International Economics
Download 7.1 Mb. Pdf ko'rish
|
Dominick-Salvatore-International-Economics
P
M in Q M D' M E' B' D M S M G J H (Billion units) U.S. Import Market 4 5 5.5 6 7 1.6 1.8 2.0 2.2 2.4 2.5 2.6 0 P X in Q X S' X E' A' D X S X K L M (Billion units) U.S. Export Market FIGURE 16.2. Derivation of the U.S. Demand and Supply Curves for Foreign Exchange. With D M (at R = $1/ ¤ 1) and S M in the left panel, P M = ¤ 1 and Q M = 12 billion units per year, so that the quantity of euros demanded by the United States is ¤ 12 billion (point B ). This corresponds to point B in Figure 16.1. With a 20 percent depreciation of the dollar, D M shifts down to D M . Then P M = ¤ 0.9 and Q M = 11 billion units, so that the quantity of euros demanded by the United States falls to ¤ 9.9 billion (point E in the left panel). This corresponds to point E (with ¤ 9.9 billion rounded to ¤ 10 billion) in Figure 16.1. With D X and S X (at R = $1/ ¤ 1) in the right panel, P X = ¤ 2 and Q X = 4 billion, so that the quantity of euros supplied to the United States is ¤ 8 billion (point A ). This corresponds to point A in Figure 16.1. With a 20 percent depreciation or devaluation of the dollar, S X shifts down to S X . Then P X = ¤ 1.8 and Q X = 5.5 billion units, so that the quantity of euros supplied to the United States rises to ¤ 9.9 billion (point E ). This corresponds to point E in Figure 16.1. In the left panel of Figure 16.2, D M is the U.S. demand for imports from the European Monetary Union in terms of euros at R = $1/¤1, while S M is the EMU supply of imports to the United States. With D M and S M , the euro price of U.S. imports is P M = ¤1, and the quantity of U.S. imports is Q M = 12 billion units per year, so that the quantity of euros demanded by the United States is ¤12 billion (point B in the left panel of Figure 16.2). This corresponds to point B on the U.S. D¤ in Figure 16.1. When the dollar depreciates by 20 percent to R = $1.20/¤1, S M remains unchanged, but D M shifts down by 20 percent to D M (see the left panel of Figure 16.2). The reason is that for the United States to continue to demand 12 billion units of imports (as at point B on D M ), the euro price of U.S. imports would have to fall from P M = ¤1 to P M = ¤0.8, or by the full 20 percent of the depreciation of the dollar, in order to leave the dollar price of imports unchanged (point H on D Download 7.1 Mb. Do'stlaringiz bilan baham: |
Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
ma'muriyatiga murojaat qiling
ma'muriyatiga murojaat qiling