Causes and Consequences of Balance of Payments Imbalances
Investigation into the causes of persistent current account deficits or surpluses and their macroeconomic implications for exchange rates, national debt, and policy choices.
Key Questions
- Analyze the incentives that lead to a persistent current account deficit.
- Explain the potential risks associated with a large and persistent current account deficit.
- Evaluate the trade-offs a government must make to correct a balance of payments crisis.
National Curriculum Attainment Targets
Suggested Methodologies
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