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New Revision Presentation on Balance of Payment Adjustment Policies
Geoff Riley
22nd February 2009
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!
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.