Macro Notes 9: Balance of Payment

At the end of this set of notes, you should be able to explain:

1. Introduction
2. Structure of BOP
3. Causes of BOP deficit (current account)
4. Causes of BOP deficit (capital and financial account)
5. Consequences of a BOP disequilibrium
6. Policies to correct a BOP disequilibrium
7. Relationship between inflation and BOP

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