Balance of payments and problem of deficits, Microeconomics

BALANCE OF PAYMENTS AND PROBLEM OF DEFICITS:

The principal tool for the analysis of the monetary aspects of international trade is the balance of international payments settlement. This statement, also simply known as the 'balance of payments' (BOP), is a systematic record of all international economic transactions, visible and invisible, of a country during a given period, usually a year. In other words, the statement is a device for recording all the economic transactions within a given period between the residents of a country and the residents of other countries. The BOP of each of the individual countries, technically speaking, always 'balances'. Such equality in the debit and credit sides of the BOP, known as equilibrium, has no economic significance. It simply results from the double entry book-keeping procedure which is used to record the transactions.  

The analysis of the BOP can be done in terms of its two major sub-divisions: (a) Current Account, and (b) Capital Account.  

Posted Date: 11/15/2012 12:19:57 AM | Location : United States







Related Discussions:- Balance of payments and problem of deficits, Assignment Help, Ask Question on Balance of payments and problem of deficits, Get Answer, Expert's Help, Balance of payments and problem of deficits Discussions

Write discussion on Balance of payments and problem of deficits
Your posts are moderated
Related Questions
The Demand Curve - The demand curve exhibits how much of a good consumers are ready to buy as the price per unit changes keeping non-price factors constant. - This price-qua

Consider the market for Kitty Litter. Assume this industry is purrfectly competitive and is presently in long-run equilibrium. Suppose people begin to prefer Dogs as pets and Cat

what is market economy and how it solve the central problem

Let''s assume that a monopolist decides to maximize revenue, rather than profit. How does this operating objective change the size of the deadweight loss?

Prove that the utility approach and the indifference curve approach yield the same consumer equilibrium.

Implications of Williams model of managerial discretion in Nepalese industries

What is Co-ordination Number? A Co-ordination Number is the total number of ligands which are attached to the central metal atom by co-ordinate bonds or number of atoms of a liga

Deviation - Difference between the expected and actual payoff -  Adjusting for the negative numbers -  The standard deviation measures square root of average of squa

Why is it unusual for yields on longer term notes to be lower than yields on shorter term notes? 2pts b) Why would any investor buy the 2 year note (instead of the 1 year) given it

when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.