国际经济学重点名词解释

●Arbitrage:The purchase of a currency in the monetary centerwhere it is cheaper for immediate resale in the monetary center where it is more expensive in order to make a profit.( buying at a low price and selling at a high price for a profit.)●Monetary approach: Economists believe that the money supplydetermines the price level in the long run .●Hyperinflation :occurs when a country experiences veryhigh and usually accelerating rates of price inflation, rapidly depreciating the real value of the local currency, and causing the population to minimize their holdings of the local money.●contractionary monetary policy :is one that reducesthe surplus of available assets. This is brought into action and controlled by a central bank or fiscal body appointed by thegovernment. Its primary purpose is to control inflation.●Purchasing power parity:The notion that the ratio betweendomestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies.●Devaluation:A deliberate downward adjustment to a country'sofficial exchange rate relative to other currencies.●Appreciation :The increase in value of an asset. Unless you areshort selling, appreciation is always a good thing!●Overshooting:A phenomenon in economics used to explainwhy exchange rates are more volatile than would be expected.●exchange rate: is the rate between two currencies at whichone currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.●Balance of Payment:is defined as, "Systematic record of all economictransactions between the residents of a foreign country" Thus balance of payments includes all visible and non-visible transactions of a country during a given period, usually a year. It represents a summation of country's current demand and supply of the claims on foreign currencies and of foreign claims on its currency.[●Speculation:is the practice of engaging in risky financialtransactions in an attempt to profit from short or medium term fluctuations in the market value of a tradable good such as a financial instrument, rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, interest, or dividends.●Sterilization:a term referring to central bank operationsaimed at neutralizing foreign exchange operations' impact on domestic money supply and to generally offset potentially adverse consequences of large capital flows.● Expansionary monetary policy :is when a central bank uses itstools to stimulate the economy. This usually means lowering the rate to increase the money supply. This action increases liquidity, giving banks more money to lend.●Optimum currency area :is a geographical regionin which it would maximize economic efficiency to have the entire region share a single currency.●floating exchange rate: is a type of exchange-rate regime inwhich a currency's value is allowed to fluctuate according to the foreign-exchange market. A currency that uses a floating exchange rate is known as a floating currency. A floating currency is contrasted with a fixed currency.●marginal propensity to import:refers to the change inimport expenditure that occurs with a change in disposable income (income after taxes and transfers).●Managed floating system : is the current international financialenvironment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies.●Vehicle currency :is a currency demonstrating the convenience to allparties of picking one or two leading currencies used by smaller countries as focal points for trading .It . in any center of foreign exchange trading,most business is carried on in only a few foreign currency,●The official reserve transactions account:it consists ofcentral transactions in international reserve assets:gold,foreign exchange reserves,credits issued by the international monetary fund,and special drawing rights.central banks hold these reserve assets to back up the liabilities they issue.●Exchange rate overshooting :is defined as the case in which theinitial depreciation rate is larger than the long-run depreciation rate ,that is the case in which the post-crisis exchange rate is lower than the short-run level.。