International economics

Table of Contents

1. Topic pack - International economics - introduction
2. Section 3.1 International trade (notes)
3. Section 3.1 International trade (questions)
4. Section 3.1 International trade - simulations and activities
5. Section 3.2 Exchange rates (notes)
6. Section 3.2 Exchange rates - questions
7. Section 3.2 Exchange rates - simulations and activities
8. Section 3.3 Balance of payments - notes
9. Section 3.3 Balance of payments - questions
   1. Current account - short answer
   2. The balance of payments - self-test questions
   3. Balance of payments - calculation (1)
   4. Balance of payments - calculation (2)
   5. Methods of correction - short answer
   6. Balance of payments - essay
   7. Can the beast be tamed? America's monster trade gap
10. Section 3.4 Economic integration - notes
11. Section 3.4 Economic integration - questions
12. Section 3.5 Terms of trade - notes
13. Section 3.5 Terms of trade - questions
14. Print View

Balance of payments - essay

Question 1

(a) Explain the main implications for a country of having a persistent deficit on the current account of its balance of payments.

(b) Discuss the view that a current account deficit is most effectively tackled through a policy of domestic deflation.