5

Balance of Payments

pearson

Gold Souk in Diera, Dubai, UAE∗

 

CHAPTER OBJECTIVES

The chapter acquaints the readers with the structure of the balance of payments, balance of payments disequilibrium and with how disequilibrium is adjusted. In particular, it attempts to:

  • Discuss the structure of balance of payment (BOP) focussing on the current and capital account transactions.
  • Show how official reserves account is related to BOP disequilibrium.
  • Explain BOP equilibrium and disequilibrium.
  • Discuss various approaches to BOP adjustment – beginning from the classical approach to the elasticity approach, Keynesian approach and monetary approach.

Get International Business, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial