The Global Economy · Global Markets

The Balance of Payments

Understanding the current and financial accounts and the significance of deficits.

Key Questions

  1. 1What incentives lead to a persistent current account deficit?
  2. 2How does a surplus in the financial account offset trade imbalances?
  3. 3What trade-offs must a government make to correct a balance of payments crisis?

National Curriculum Attainment Targets

A-Level: Economics - The Global EconomyA-Level: Economics - Balance of Payments
Year: Year 13
Subject: Economics
Unit: The Global Economy
Period: Global Markets

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