EconomicsCode 9708

Policies to correct disequilibrium in the balance of payments

What this topic asks you to be able to do

  • parts that make up the balance of payments accounts: the current account, the financial account and the capital account
  • the impact that fiscal, monetary, supply-side, protectionist and exchange rate measures have on a country's balance of payments
  • how expenditure-switching policies differ from expenditure-reducing policies