Select a country of your choice (other than Saudi Arabia) and observe the last balance of payments issued by that country. Does the country run a current account deficit or surplus? What are the driving factors for the deficit or surplus? What policies should the government implement to improve the external position of the country?
- Embed course material concepts, principles, and theories, which require supporting citations along with at least one scholarly, peer-reviewed reference in supporting your answer unless the discussion calls for more.
- readings required:
Chapter 10 in International Economics (PowerPoint attached)
Chapter 11 in International Economics (PowerPoint attached)
Ibarra, R. & Tellez-Leon, I. (2020). Are all types of capital flows driven by the same factors? Evidence from Mexico. Empirical Economics, 59(1), 461-502. Retrieved from https://doi-org.sdl.idm.oclc.org/10.1007/s00181-019-01624-5
Harvey, J. (2019). Exchange rates and the balance of payments: reconciling an inconsistency in Post Keynesian Theory. Journal of Post Keynesian Economics, 42(3), 390-415.
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