New Revision Presentation on Balance of Payment Adjustment Policies
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This new revision presentation focuses on potential adjustment policies for the balance of payments. The presentation links to some recent BBC audio-visual clips and other external sources and covers a range of countries. Here are some of the key points:
- Some trade deficits are partially self correcting
- But economic recession and a depreciation are not enough if the root causes lie on the supply-side of the economy
- Ultimately BoP adjustment requires:
* A period of below trend growth
* Improvement in investment in traded goods industries
* Control of price and cost inflation relative to that of our competitors
* Open trade to drive better export performance
Protectionism is not the answer!
Download PowerPoint version (ppt)
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