All Questions
Tagged with balance-of-payments international-economics
8 questions
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Questions about current account plus financial account=0 and balance of payment deficit
If current account (CA) plus financial account (FA) always equal 0 under the double entry bookkeeping, then how does balance of payment deficit occur?
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Surplus in the Financial Account - BoP
As a student I am trying to understand the BoP dynamics resulting from a net inflow in the financial account (FA) of a country.
Assuming a country has a Current Account (CA) deficit of -50.
CASE1: if ...
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How does high external debt hurt GDP?
Really confused by this. Say debt burdens increase and country A now has to spend more of its income towards servicing its debt to country B, causing a fall in consumption. Country B now has more ...
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Can anyone explain why the Swiss balance of payments is not balanced (real data)?
While doing a little research I went to the Swiss National Bank's website and downloaded their data on the Swiss balance of payments.
The data is here:
https://data.snb.ch/en/topics/aube#!/cube/...
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What happens if the Central Bank does not absorb a BOP deficit/surplus?
The basic principle of BOP accounting is double entry bookkeeping. In short, every transaction enters twice. As a consequence of this, by definition
$$\text{Current account } (CA) + \text{Capital ...
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Devaluation of exchange rate meaning
Pilbeam's textbook on International Finance (p. 106) says:
(...) the immediate effect of a devaluation of exchange rate from $S_1$ to $S_2$ is to make domestic good competitive (...)
How can be ...
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Terms definition in Balance of Payment
I have problems in distinguishing among terms in the Balance of Payment / the international balance sheet of a nation.
As far as I know, on Assets and Liabilities sides of BPM, there are Portfolio ...
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How does Russia have so much foreign exchange reserves?
Source
Russia is under U.S. sanctions. How does Russia have so much foreign exchange reserves?
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