Current account of balance of payments

What the syllabus asks of you

• structure The components of the current account of the balance of payments – trade in goods, trade in services, primary income and secondary income. Calculation of deficits and surpluses on the current account of the balance of payments and its component sections.
• causes of current account deficit and surplus Reasons for deficits and surpluses.
• consequences of current account deficit and Impact on GDP, employment, inflation and foreign exchange rate. surplus
• policies to achieve balance of payments The range of policies available to achieve balance of payments stability and how effective they might be. stability
• policies to achieve balance of payments The range of policies available to achieve balance of payments stability and how effective they might be. stability