HEEEELLLPPPP with balance of payments and exchange rates (1 Viewer)

[:: dreami ::]

The floating exchange rate system ensures that there is a balance between the current and capital accounts.

WHY?!?!?!

thanks ^^

 

[ashwin]

Demand for $A = Supply of $A

which equals....

Exports + Income inflow + captial inflow = imports + income outflow + capital outflow

which equals....

(exports - imports) + (income inflow - outflow) = (capital outflow - inflow)

which is...

current account = capital and financial accont

CAD = KAS

 

[AGB]

hav a look at this:

http://www.boredofstudies.org/community/showthread.php?s=&threadid=19473