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This leads to increase in expenditure on both current and capital accounts in BOPthereby creatinga BOP deficit
the current account deficitscreateBOP deficits
high levels of imports(passive) caused byBOP deficits
Capital outflowscausea BOP deficit
either a worsening of the current account or capital account , or both(passive) can be caused byA BOP deficit
The demand for dollars will risesharply causinga BoP deficit
Any attempt to increase the money stock ( from LM0 to LM1 ) temporarily raises income and importscausinga BOP deficit
The throw on effect is an increase in expenditure on both current and capital accounts in BoPthereby creatinga BOP deficit
the global economic decline and high crude oil prices(passive) is caused byThe BoP deficit
the problemcausethe BOP deficit
Supervision of NRI accountsto preventBOP deficit
factorscausingBOP deficit
a deficit in either the CA or KA(passive) can be caused byA BOP deficit
The sharp widening of the merchandise goods ' trade deficitcreateda BoP deficit
market pressure for dollar depreciating and pound appreciating from official exchange ratecreatesmarket pressure for dollar depreciating and pound appreciating from official exchange rate
from global crisis Supplemented by external borrowing ( AfDB & World Bankresultingfrom global crisis Supplemented by external borrowing ( AfDB & World Bank
to Reduced Foreign Investments Forex reserves Depletion External Borrowings Debt Trapleadsto Reduced Foreign Investments Forex reserves Depletion External Borrowings Debt Trap
to more restrictive fiscal or monetary policies , currency controls , export incentives , and import obstacles 11 - 24 Inflation and the International CompanyCould leadto more restrictive fiscal or monetary policies , currency controls , export incentives , and import obstacles 11 - 24 Inflation and the International Company
to a severe depletion of gold reservesleadingto a severe depletion of gold reserves
exchange rates to rise and shift both the BP and the IS schedules to the rightcausingexchange rates to rise and shift both the BP and the IS schedules to the right
to devaluation of currencyleadsto devaluation of currency
depreciation FIGURE 8causingdepreciation FIGURE 8
depression on home currencycausesdepression on home currency
problemscauseproblems
currency weakeningcausescurrency weakening
the 10causingthe 10
to currency devaluation , financial instability ... raise in interest rates , reduction in investment and GDPwill leadto currency devaluation , financial instability ... raise in interest rates , reduction in investment and GDP
to the loss of credibility and the collapse of the Bretton Woods systemledto the loss of credibility and the collapse of the Bretton Woods system
alsowould ... causealso