INTERNATIONAL BALANCE OF PAYMENTS
After reading this chapter, you should be able to:
- Discuss the fundamentals of the balance of payments of a country
- Understand the different components of the balance-of-payments account
- Explain the concept of equilibrium and disequilibrium in a country’s balance-of-payments account
- Understand the significance of the official reserves account in balance of payments accounting
- Be conversant with trends in India’s balance-of-payments account over the years
The Indian economy faced a balance of payments crisis in July 2013 as its foreign exchange reserves touched a low of USD 280 billion—enough to cover only seven months of imports. India has traditionally ...