Balance of Payments dynamics: Causes and Corrective Measures

Causes of disequilibrium in Balance of Payments, Steps to improve Balance of Payments position over the long term

What you'll learn
- The students will learn the meaning and implications of a balanced, surplus, and deficit Balance of Payments (BOP).
- They will explore the key factors responsible for BOP imbalances and understand their impact on a nation's economy.
- The students will learn about effective strategies to improve a country’s BOP position.
- They will understand the difference between autonomous and accommodating transactions, gaining insights into their roles in balancing international payments.

Requirements
- Basic understanding of economic principles such as supply and demand, inflation and interest rates

Description
In this course,  we will explore the intricate dynamics of the Balance of Payments (BOP) and its implications for national economies. In this course, we will delve into the following critical areas:

1.Meaning of Balanced, Surplus, and Deficit Balance of Payments: We will begin by defining what constitutes a balanced BOP, as well as the implications of having a surplus or a deficit. Participants will learn how these conditions affect a country's economic stability and international relations.

2.Culprits in Balance of Payments: This section will identify the key factors that contribute to imbalances in the BOP. We will analyze various economic, political, and social influences that can lead to surpluses or deficits, including trade policies, exchange rates, and external economic shocks.

3.Strategies to Improve Balance of Payments Position: We will explore practical strategies that governments and policymakers can implement to improve their BOP position. This will include discussions on trade policies, currency management, and measures to boost exports and reduce imports.

4.Meaning of Autonomous Transactions: We will delve into the concept of autonomous transactions, which are economic activities that occur independently of the current account balance.

5.Role of Accommodating Transactions: Finally, we will examine accommodating transactions, which are adjustments made to balance the BOP when imbalances occur.

By the end of this course, you'll be equipped to analyze BOP data, understand its implications, and contribute to discussions on effective strategies for economic stability.

Who this course is for:
- Students and any individual who enjoys learning about various concepts of economics
More Info