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Q. What are the reasons for the world as a whole running a substantial current account deficit?
Answer: This deficit improved sharply in the early 1980s and has remained high. The major reasons are statistical discrepancies of timing factors, national accounts while the major factor is the systematic misreporting of international interest income flows. Ever since the world interest rates raised sharply after 1980 the size of the world interest payment discrepancy increased with them. Additionally much of the world's merchant shipping fleet is registered in countries that don't report maritime freight earnings to the IMF which collects these data.
Q. Suppose Russia's inflation rate is 200% over one year, but the inflation rate in Switzerland is only 2%. According to relative PPP, what should happen over the year to the Swis
haberler''s opportunity cost theory
Foreign Direct Investment Theoretical Definition: The causal (independent) variable is the inward Foreign Direct Investment (FDI) to the technology sector. Foreign direct i
Q. How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under t
Q. What are the reasons for the world as a whole running a substantial current account deficit? Answer: This deficit improved sharply in the early 1980s and has remained high.
Q. "The balance of payments is always balanced." Discuss. Answer: True each international transaction automatically enters the balance of payments twice once as a debit and o
what is ppp
Q. Consider, as a result of several dynamic factors associated with exposure to international competition, Albania's economy grew, and is now shown by the rightmost production pos
Q. How did the European single currency evolve? Answer: The answer is related to the crumple of Bretton Woods and the European Currency reform of 1969-1978. The Werner
Q. How did countries use their policy tools to regain internal and external balance after the first oil shock of 1973? Answer: Seeing that the recession deepened over 1974 an
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