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Results tagged with balance-of-payments
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user 37645
1
vote
0
answers
33
views
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 mone …
- 187
1
vote
1
answer
180
views
If the BOP is always equal to 0 then why would a trade imbalance cause currencies to fluctuate?
I am a bit confused in interpreting the correlation between a trade deficit/surplus & currency depreciation/appreciation. Considering BOP always equals 0 and a outflow in the current account is balanc …
- 187
2
votes
1
answer
227
views
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