问题描述：
英语翻译
International financial market
An important aspect in the transformation of international financial markets comes from the speed,severity*,and scope of market reactions.Policymakers who try to stimulate growth through either expansionary monetary or fiscal* policy must face an external constraint imposed by a pegged* exchange rate or a limit on how much can be borrowed from foreigners.Throughout most of the post-World War II period,imbalances resulting from differences in national economic policies or macroeconomic* performance were slow to develop.Capital mobility was limited,and there was less opportunity for capital flight.At some point,the overstretched country would devalue by 10 percent,20 percent,or so and the cycle would start again - with no great headlines,no great drop in national income,and no knock-on* effects to neighboring countries.
Over the last 10 years,the nature of international financial adjustment has changed.With the increase in size and mobility of capital internationally,a substantial amount of national debts may be to foreigners,denominated in foreign currencies,and in practice these debts are often short-term.As long as foreigners feel confident about the macroeconomic performance of a country,existing short-term debts are rolled over and new capital flows may follow thus furthering the expansion.
However,any event that shakes confidence (a corporate failure,a bank failure,a commodity price drop,a political speech,or a scandal) could halt the flow of capital and jeopardize* the rollover* of debt on existing terms.A scenario of this sort triggers* a demand for international reserves,which are in limited supply at the central bank.Once the supply of international reserves is threatened,the country's central bank may be forced to step aside,allowing the currency to depreciate without any assurance of where the next stable anchor will be.We can call this a currency crisis.Because bank debts are in foreign currencies,the devaluation worsens bank balance sheets and banks may be forced to stop lending or call in existing loans to raise cash.Domestic banks are likely to fail if these steps are unsuccessful.Thus,the domestic economy may weaken severely following the currency crisis.If other countries have pursued similar macroeconomic strategies,or face similar macroeconomic conditions,these events underscore the impact that a vast pool of capital may have when it is mobile across borders and denominated in a foreign currency.
International financial markets impose a powerful disciplining force - rewarding good policies and outcomes,and penalizing* poor policies and outcomes - much the same as stock market investors reward and penalize companies for good and bad performance.This new international investment climate raises important questions for the pricing of foreign securities and for investors and macroeconomic policies.
International financial market
An important aspect in the transformation of international financial markets comes from the speed,severity*,and scope of market reactions.Policymakers who try to stimulate growth through either expansionary monetary or fiscal* policy must face an external constraint imposed by a pegged* exchange rate or a limit on how much can be borrowed from foreigners.Throughout most of the post-World War II period,imbalances resulting from differences in national economic policies or macroeconomic* performance were slow to develop.Capital mobility was limited,and there was less opportunity for capital flight.At some point,the overstretched country would devalue by 10 percent,20 percent,or so and the cycle would start again - with no great headlines,no great drop in national income,and no knock-on* effects to neighboring countries.
Over the last 10 years,the nature of international financial adjustment has changed.With the increase in size and mobility of capital internationally,a substantial amount of national debts may be to foreigners,denominated in foreign currencies,and in practice these debts are often short-term.As long as foreigners feel confident about the macroeconomic performance of a country,existing short-term debts are rolled over and new capital flows may follow thus furthering the expansion.
However,any event that shakes confidence (a corporate failure,a bank failure,a commodity price drop,a political speech,or a scandal) could halt the flow of capital and jeopardize* the rollover* of debt on existing terms.A scenario of this sort triggers* a demand for international reserves,which are in limited supply at the central bank.Once the supply of international reserves is threatened,the country's central bank may be forced to step aside,allowing the currency to depreciate without any assurance of where the next stable anchor will be.We can call this a currency crisis.Because bank debts are in foreign currencies,the devaluation worsens bank balance sheets and banks may be forced to stop lending or call in existing loans to raise cash.Domestic banks are likely to fail if these steps are unsuccessful.Thus,the domestic economy may weaken severely following the currency crisis.If other countries have pursued similar macroeconomic strategies,or face similar macroeconomic conditions,these events underscore the impact that a vast pool of capital may have when it is mobile across borders and denominated in a foreign currency.
International financial markets impose a powerful disciplining force - rewarding good policies and outcomes,and penalizing* poor policies and outcomes - much the same as stock market investors reward and penalize companies for good and bad performance.This new international investment climate raises important questions for the pricing of foreign securities and for investors and macroeconomic policies.
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