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Results tagged with balance-of-trade
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user 37645
1
vote
1
answer
140
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How does a trade deficit affect GDP?
How would an increase in the trade deficit affect GDP?
As per the majority of sources I’ve read such as Investopedia, they claim that GDP would decrease due to a decrease in the NX component of the GD …
- 187
1
vote
1
answer
180
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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