A fixed exchange rate (also called a pegged exchange rate) is a system in which the government or
Tag: balance of payments
exchange rate
An exchange rate is the price of one currency expressed in terms of another currency — specifically, how
consequences of current account imbalances
Current account imbalances — whether a surplus or a deficit — have significant consequences for both the domestic
causes of current account imbalances
Current account imbalances occur when a country’s total receipts from exports of goods, services, primary income, and secondary
secondary income
Secondary income (also called current transfers) is a component of the current account that records one-way, non-reciprocal transfers
primary income
Primary income is a component of the current account that records income earned by residents of one country
trade in services
Trade in services (also known as invisible trade) refers to the export and import of intangible services between
trade in goods
Trade in goods (also known as visible trade) refers to the import and export of physical, tangible products
balance of payments
The balance of payments (BOP) is a comprehensive accounting statement that records all economic transactions between a country’s
current account
The current account is a component of the balance of payments. It records a country’s transactions in goods,