thebalanceofpayments-nyustern-TheBalanceofPayments.pptVIP

The Balance of Payments or chapter 3 Talk Agenda How nations measure int’l economic activity? Define Current Account, Capital/Financial Account? How can one use the BOP sub-accounts to make financial decisions? What leads to capital flight? Some History. Some Q A I ask the Q, you give the A The Balance of Payments Balance of Payments BOP : measures all international economic transactions b/n residents foreign residents. Monetary and fiscal policy must take the BOP into account at the national level BOP data may be important Indicates pressure on exchange rate May signal imposition/