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!

Access interactive version

Download PowerPoint version (ppt)

Download PDF handout version