chapter 7 International Lending and Financial Crises.pptVIP免费

HuangzhiyongHuangzhiyongNanjingUniversityofFinance&Economicshzy196896@sina.comTel：84028241Chapter7:Chapter7:InternationalLendingInternationalLendingandFinancialCrisesandFinancialCrisesInthischapterwewilltakeacloselookatInthischapterwewilltakeacloselookatthecausesandeffectsoflendingandthecausesandeffectsoflendingandportfolioinvestment.Internationallendingportfolioinvestment.Internationallendingcanbringmajorbenefitsoftwotypes.Firstcanbringmajorbenefitsoftwotypes.Firstitrepresentsinter-temporaltrade.Second,itrepresentsinter-temporaltrade.Second,itallowslendersandinvestorstodiversifyitallowslendersandinvestorstodiversifytheirinvestmentsmorebroadly.theirinvestmentsmorebroadly.一、InternationalfinancialcapitalflowsThekeycategories:PrivatelendingandinvestingLongterm•Directinvestment•Loans•PortfolioinvestmentShorttermOfficiallendingandinvestingGainsandlossesfromWell-BehavedInternationalLending•Assumption:–Theworldisstableandpredictable;–Borrowersfullyhonortheircommitmentstorepay;•Figure7.1showsthenormaleffectsofallowingfreeinternationallendingandborrowing.Figure7.1Well-BehavedInternationalLendingTaxesoninternationallending•IfJapanhasmarketpowertorestrictitsforeignlendingandexploitsthispowerbyimposingataxof2percentperyearonthevalueofassetsheldabroadbyresidentsofJapan.•IfAmericaalsohasmarketpowertorestrictitsborrowingandimposesthe2percenttaxonthesameinternationalassets.二、InternationallendingtodevelopingcountriesThesurgeininternationallending,1974~1982–Therichoil-exportingnationshadahighshort-runpropensitytosaveoutoftheirextraincome.–pessimisminindustrializedcountries.–resistancetoFDI,–HerdingbehaviorTheDebtCrisisOf1982•InAugust1982,Mexicodeclaredthatitwasunabletoserviceitslargeforeigndebt.•Mainlyreasons:–Debtcondition–InterestratesincreasedsharplyintheUnitedStates.–Developingcountries’exportsdeclined–Erroreconomicpolicies–OverlendingandOverborrowingFigure1NetFinancialFlowstoDevelopingCountries,1981-2009($Billions)Figure21.3Developing...