Add Papers Marked0
Paper checked off!

Marked works

Viewed0

Viewed works

Shopping Cart0
Paper added to shopping cart!

Shopping Cart

Register Now

eKönyvtár library
FAQ
 
  • Why the Balance of Payments and the Current Account Deficit Are so Important

     

    Essays2 Economics

Great deal: today with a discount!

Regular price:
1 031 Ft
You save:
174 Ft
Discounted price*:
857 Ft
Purchase
Add to Wish List
ID number:518823
Evaluation:
Published: 18.06.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The balance of payments is important in this situation because; when assessing the likely impact of a policy that will lead to a fall in the value of the currency, consideration must be given to it to estimate how it will affect the market for both exports and imports.
1983 was the first year of floating the Australian Dollar. This means it is worth what the rest of the world thinks it is worth. This is achieved by forces of supply and demand on the foreign exchange market (FOREX). This is related to the Marshall Lerner Condition. This shows the conditions under which a change in the exchange rate of a country's currency leads to an improvement or worsening of a country's balance of payments. Under a floating exchange rate, balance of payments disequilibrium should automatically be restored to equilibrium without the need for government policy.
The balance of payments and the current account deficit are important in managing the Australian economy. This is because they give the government and other institutions (such as the RBA) an idea of where the economy stands in relation to the rest of the world. Many economic decisions can be made based on the information received from figures collected.

Work pack:
GREAT DEAL buying in a pack your savings −1 309 Ft
Work pack Nr. 1271089
Load more similar papers

Send to email

Your name:

Enter an email address where the link will be sent:

Hi!
{Your name} suggests you to check out this eKönyvtár paper on „Why the Balance of Payments and the Current Account Deficit Are so Important”.

Link to paper:
https://eng.ekonyvtar.eu/w/518823

Send

Email has been sent

Choose Authorization Method

Email & Password

Email & Password

Wrong e-mail adress or password!
Log In

Forgot your password?

Facebook

Not registered yet?

Register and redeem free papers!

To receive free papers from eKönyvtár.com it is necessary to register. It's quick and will only take a few seconds.

If you have already registered, simply to access the free content.

Cancel Register