All Questions
Tagged with balance-of-payments macroeconomics
16 questions
1
vote
2
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90
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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 ...
1
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1
answer
325
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BOP balancing to 0, use of capital and financial account
Please someone for the love of god help me. I can't find two sources on the internet that don't have conflicting or very difficult to understand information on the balance of payments.
I have various ...
1
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1
answer
38
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Is a balanced BOP (without taking the official reserves account into consideration, desirable in the real world?
In general, BOPs(without taking the official reserves account into consideration( aren't balanced.
A BOP surplus is generally a good sign if the correct goods and being exported and a BOP deficit is ...
1
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0
answers
33
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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 ...
- 187
2
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1
answer
236
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The gold standard and trade imbalances
I’ve recently come across a paper which states that trade imbalances during the gold standard caused outflows/inflows of gold from the country running the trade surplus/deficit thus securing balanced ...
- 187
1
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0
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42
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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/...
- 405
2
votes
0
answers
37
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Unilateral transfers in the balance of payments
In the secondary income account, unilateral transfers like unconditional foreign aid are recorded but aren't every transaction double-entry to make the balance of payments equal 0. What is the other ...
- 21
1
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0
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63
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Why a Current Account deficit implies a Financial Account surplus [duplicate]
Every macro textbook out there states that if a country has a Current Account deficit, it must have a surplus in the Financial account, but I have not heard a convincing explanation.
Imagine a ...
2
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1
answer
39
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Where's a good place to find Information on Non-OCED countries?
I'm looking for Private Savings (Sp), Investment (I), Taxes (T), Government Spending (G) for India.
- 21
1
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0
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30
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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 ...
- 31
3
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1
answer
25
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Why FDI stock in the same year is different in the same reports?
From World Investment Report 2003, in 2000, the US has 12.4% GDP as FDI inward stock and 13.2% GDP as FDI outward stock. These numbers are equivalent to 1274720 million USD, and 1356960 million USD. ...
- 131
1
vote
1
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48
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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 ...
- 131
3
votes
2
answers
160
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Difference between capital and current account
Why is an increase in foreign assets in a country different from us just selling foreigners our goods? As in why is one (inc. in assets) in capital account and the other (exports) in current account?
- 31
0
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2
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25
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Have UK exports (goods and services) to Ireland declined in value since 2011?
Where can I find the relevant Office Of National Statistics data on UK exports to Ireland? I want to know if the value of UK exports to Ireland has declined since 2011 and if so, does anyone know why ...
- 1
3
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0
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46
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help understanding the "financing" of the current account
I often hear phrases like country XYZ "finances its current account deficit through flows in its financial account". i have a tough time understanding this idea of "financing" a current account ...
- 31
0
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2
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424
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What's the role for official intervention in the Balance of Payments?
If the Balance of Payments (BP) is defined as
$$BP=\text{Current Account}+\text{Capital Account}$$
where:
$$\text{Current Account}=X-M+\text{Net Income Interest}$$
and
$$\text{Capital Account}=\...
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