Current account

The current account is an important component of the balance of trade system of our country. It is a measurement of a country’s trade where the value of the goods and services it exports. A current account deficit represents negative sales abroad. A country undergoing current account deficit results in foreign liabilities and debt with the rest of the world. This further leads to payback of foreign current account reserves. Current Account includes imports and exports of goods and services and unilateral

Current Account Sustainability “Does a Current Account deficit Matter?” Political Science 412: International Political Economy The Pennsylvania State University Yun Shik Park 07.28.2015 Current Account Sustainability Does a current account deficit matter? Yun Shik Park Abstract: Sometimes a country will export their goods to another country, rather than importing them and it causes current account deficits. The purpose of this paper is to examine the role of current account in national

TACKLING CURRENT ACCOUNT DEFICIT IN INDIA INTRODUCTION There has been a sharp increase in the Current Account Deficit in Indian economy. In previous years the current account deficit increased moderate rate but in the fiscal year of 2011-12 there was sharp increase in current account deficit, marking a rise to nearly 4.2 per cent of GDP. High current account deficit has always posed serious implications for an economy and therefore for India it is a matter of concern. This research paper deals with

think tanks, financial institutions, and governments to develop effective “early-warning” models focusing on numerous predictors (Edwards, 2001) including current account deficits. Noticeably, the role of the deficits behind major financial collapses has been in the centre of great controversy. On one hand, some scholars have argued that current account deficits should be seen as a threat towards the stability of the world economy and thus should be properly dealt with while on the other hand, the view

Economics the current account deficit Australia has, has been of some debate in recent years. The current account is the summation of the balance of goods and services and net income and is a component of the balance of payments alongside the capital and financial account. When a deficit occurs in the current account it means that the value of imports (debits) are exceeding the value of exports (credits). The value of the current account has oscillated between the period 2008 to current, however despite

Masters of Science (Banking) UUM-IBBM WBB 6013: SEMINAR IN BANKING FDI Inflow, Current Account Balance, Inflation And Interest Rate: How Do They Impact The Malaysian Economy? By Siva Kumar Kandiah (Matric No: 89306) ___________________________________________________________ Abstract This article seeks to find which of the macroeconomic variables among FDI inflow, current account balance, inflation and interest rate play a significant role in economic growth in Malaysia using

pay for the current goods and services will not stop. The USA borrows from abroad to finance its trade deficit, on top of that the USA government spends more money than it takes from taxes. The budget deficit increases the gap between country’s national savings and national income and and also widens the deficit in the current account by necessitating the country to borrow more money from other foreign countries. This widened current deficit

Assignment Two: Financial Management- The Greek Exit Plan. Submitted by: Chidinma Theresa Onyejiuwa August 10, 2015 Student Number: R1407D254280 Lecturer: Janell Komodromou INTRODUCTION After the emergence of the Euro currency in January 1999, the currency became the replacement for the Euro currency unit as all the currency of the countries in the Eurozone ceased to exist. As a result of this, the countries affected began to run a parallel system whereby the old currencies used

As large interest rate differentials in favor of EMEs are expected to persist, capital inflows and possibly long term investments ensue (Lavigne et al. 2014, 25; Lim et al. 2014, 8). All of these capital inflows into EMEs due to increased demand and appetite for risk would serve to put upward pressure on asset prices and can potentially lead to financial bubbles and speculative investment as a result of the increased liquidity and risk seeking. Along with effects on capital flows, QE can also have

Causes of Mexico’s balance-of-payments difficulties prior to Peso devaluation With the large capital surplus largely arising from foreign investments to support the huge trade deficits in the Mexican current account, all seemed to go well for the Mexican economy until several political crises erupted and several macroeconomics mistakes were left exposed in 1994 which affected foreign investor’s confidence. The year 1994 marks the final year of Carlos Salinas