Lecture 12 Notes

Lecture 12 Notes - ECN 211 Macroeconomic Principles L12:...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
ECN 211 Macroeconomic Principles L12: Balance of payments (continued)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
RECAP: Balance of Payments Accounts Three main elements: Current Account Financial and Capital Account Statistical Discrepancy BOP = Current Account + Financial and Capital Account ± Statistical Discrepancy
Background image of page 2
Current Account … the sum of merchandise (goods), services, investment income and unilateral transfers A positive number is a Current Account surplus A negative number is a Current Account deficit
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Merchandise … all transactions involving goods Balance of Merchandise account is referred to as the Balance of Trade If the balance of trade is in a surplus then Exports of merchandise > Imports of merchandise If the balance of trade is in a deficit then Exports of merchandise < Imports of merchandise
Background image of page 4
Merchandise Exports of goods are credits (+) to the current account Imports of goods are debits (+) to the current account
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Services … all transactions involving services Examples: international students tuition, tourism, royalties, transportation costs, insurance premiums. Exports of services are
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/03/2010 for the course ECN 211 taught by Professor Kingston during the Spring '08 term at ASU.

Page1 / 19

Lecture 12 Notes - ECN 211 Macroeconomic Principles L12:...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online