文档介绍：Useful expressions ? Content is better than riches. ? A bird in the hand is worth than two in the bush. ? Every day is not Sunday. (好景不常在) ? Every potter prizes hit pot. Useful expressions ? Love is blind. ? Kind words butter no parsnips (防风草) ? Many one says well that thinks ill. ? Never offer to teach fish to swim. Useful expressions ? A single spark can start a prairie fire. ? Nothing is stolen without hands. ? Much cry and little wool. ? It is an ill bird that fouls (犯规、弄脏、淤塞) its own nest. (家丑不可外扬) ? Automatic Adjustments with Flexible and Fixed Exchange Rates 10 ? Chapter Objective: ? Understand how the balance of payments adjusts with flexible exchange rates ? Know what a stable foreign exchange market is . Chapter Objective ? Understand how adjustment occurs under fixed exchange rates ? Know how the equilibrium level of e is determined in a closed economy ? Know how the equilibrium level of e is determined in a open economy ? Understand the meaning of foreign repercussions ? Describe how the absorbtion approach works ? Understand how all the automatic adjustments work together. Chapter 10 Outline ?1. Introduction ? with Flexible Exchange Rates ? 3. Stability of the Foreign Exchange Market ? 4. Adjustment with Fixed Exchange Rates:The Gold Standard ? 5 e Determination in a Closed Economy ? 6 e Determination in a Open Economy ? 7 Foreign Repercussions ? 8 Absorption Approach ? 9 Synthesis of Automatic Adjustments Key terms ? Stable foreign exchange market ? Unstable foreign exchange market ? Marshall-Lerner condition ? J-curve effect ? Currency pass-through ? Gold standard ? Mint parity ? Gold export point ? Gold import point Key terms ? Price-specie-flow mechanism ? Equilibrium level of e ? Multiplier ? Foreign trade multiplier ? Foregin repercussions ? Absorption approach ? Synthesis of automatic adjustments ? Quantity theory of money ? Rules of the game of the gold standard 1. Introduction ? We examine how a deficit or surplu