A-Level Economics Content Series - Balance of Payment (H2)
In this course, we will be covering one of the most abstract macro goals - balance of payment (BOP). We will be learning the correct terminology to describe BOP, the current account (CA), capital & financial account (KFA), causes of disequilibrium in BOP as well as consequences of a persistent deficit/surplus in the BOP.
0 Assignments
Lesson 1 - Definition and terminology
In this video lesson, we will discuss what BOP is. I will be sharing how to illustrate BOP when answering questions and the alternative terms that can be accepted when it comes to marking. I will be talking about the basics of BOP.
Lesson 2 - Components of BOP: Current Account (CA)
In this video lesson, I will discuss in detail how the CA works and what CA represents in the BOP. I will explain the components of CA and what it means for a country when its ‘+’ or ‘-‘ in each sub categories. I will provide examples to show how transactions in a country affects CA.
Lesson 3 - Components of BOP: Capital and Financial Account (KFA)
In this video lesson, I will discuss the importance of KFA – Time period. I will explain what is ‘Hot money’. I will illustrate the relationship between interest rates and Hot money movement. I will explain how to differentiate between short and long run capital – Time period and Commitment level.
Lesson 4 – Equilibrium
In this video lesson, I will explain what is a state of equilibrium. I will explain what constitutes a state of disequilibrium by looking at the overall balance. I will cover the causes of disequilibrium.
Lesson 5 – Consequences of BOP Surplus and Deficit and Policies to correct BOP Deficit
In this video lesson, I will discuss about the pros and cons of BOP surplus and deficit. It might not be a case that having a persistent BOP surplus is good. I will then move on to explain how government can adopt policies to correct BOP deficit briefly.
Lesson 6 – Exam Question
In this video lesson, I will provide a walkthrough of a BOP exam question. I will explain the answers at the end of the video. You may download the article here : https://bitly.ws/3gR95