Tag Archives | BOP

Correction in Balance of Payments | Foreign Trade | Economics

In this article we will discuss about the correction in balance of payments through variations in exchange rates. If a country suffers from payments deficits, the equilibrium adjustments can be possible through the suitable variations in exchange rates. Under the IMF Charter, a member country is permitted to make an adjustment in its exchange parity to deal with a fundamental [...]

By |2018-03-15T11:34:38+05:30March 15, 2018|Balance of Payment|Comments Off on Correction in Balance of Payments | Foreign Trade | Economics

How to Analyse the Effect of Devaluation? | International Economics

In this article we will discuss about how to analyse the effect of devaluation upon the balance of payment situation. In a country having a stable or pegged exchange rate, the removal of balance of payments deficit can be possible through a deliberate policy measure of devaluation. The devaluation of a currency means the deliberate lowering down of the external [...]

By |2018-03-15T11:34:35+05:30March 15, 2018|Currency Devaluation|Comments Off on How to Analyse the Effect of Devaluation? | International Economics

Monetary Approach to Balance of Payments Adjustment | Economics

The monetary approach to the balance of payments is associated with the names of R. Mundell and H. Johnson. The other writers who have made contribution to it include R. Dornbusch, M. Mussa, D. Kemp and J. Frankel. The basic premise of the approach is the recognition that the BOP disequilibrium is fundamentally a monetary phenomenon. It attempts to explain [...]

By |2018-03-15T11:34:35+05:30March 15, 2018|Balance of Payment|Comments Off on Monetary Approach to Balance of Payments Adjustment | Economics
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