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Balance of payments: Current account | Foreign exchange and trade | Macroeconomics | Khan Academy
 
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Understanding the United States Current Account in 2011 Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/current-capital-account/v/balance-of-payments-capital-account?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/government-spending-and-the-is-lm-model?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 357790 Khan Academy
#76, Balance of payment, structure and component (Class 12 macroeconomics)
 
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Class 12 macroeconomics.... Balance of payment..... Structure of balance of payment.... Current account Capital account... Contact for my book 7690041256 Economics on your tips video 76 Our books are now available on Amazon Special Combo - Economics on your tips Micro + Macro http://amzn.in/d/eSxj5Ui Economics on your tips Macroeconomics http://amzn.in/d/2AMX85O Economics on your tips Microeconomics http://amzn.in/d/cZykZVK Official series of playlists UG courses ( bcom, bba, bca, ba, honours) – https://www.youtube.com/playlist?list=PLgC10_Xv-BGirAqOr-hU8e-N_Nz0UpgJ- Micro economics complete course – https://www.youtube.com/playlist?list=PLgC10_Xv-BGg5n3YU6oEV7_HIzBuEbbOz Macro economics complete course- https://www.youtube.com/playlist?list=PLgC10_Xv-BGg2ORORpILqiDR1gyH3MkXw Statistics complete course- https://www.youtube.com/playlist?list=PLgC10_Xv-BGjrAkDyeMioJ7DEexAEeVdt National income – https://www.youtube.com/playlist?list=PLgC10_Xv-BGjpE-1V4uz_0wvvbZQnSsj_ In order to promote us and help us grow Paytm on - 7690041256
Views: 429960 Economics on your tips
Macro 5.1- Balance of Payments
 
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In this video I explain the Balance of Payments with the current and capital (financial) account. Keep in mind that when a country has a deficit in one account they must have a surplus in the other account. Thanks for watching. Please subscribe. To learn about misconceptions about the minimum wage, click here https://www.youtube.com/watch?v=4GIdROzO94M To learn more economics, click here https://www.youtube.com/watch?v=HQkVO2PsxFw Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Check out my Review Apps for Macro and Micro https://itunes.apple.com/us/app/ap-macroeconomics-review/id634270093?mt=8 Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 361756 Jacob Clifford
Balance of Payment & Balance of Trade - Simple Explantion with example
 
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The concept of trade balance, current account and balance of payment has been explained with example.
Views: 22117 Ns Toor
Imports, Exports, and Exchange Rates: Crash Course Economics #15
 
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What is a trade deficit? Well, it all has to do with imports and exports and, well, trade. This week Jacob and Adriene walk you through the basics of imports, exports, and exchange. So, you remember the specialization and trade thing, right? So, that leads to imports and exports. Economically, in the aggregate, this is usually a good thing. Globalization and free trade do tend to increase overall wealth. But not everybody wins. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 983648 CrashCourse
Balance of Payments _ Part3 _ BOT & BOP _ Mauli Gupta
 
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Excited to share video lectures from the brightest students at IIT & Delhi University. Learner (www.learner.in) is India's largest platform where Students TEACH Students. Download App at http://bit.ly/2l3zRzq and call us at 011-41082172 to get access code. Prepare for Boards for CBSE syllabus, NCERT Pattern, Class 12th. Download app from http://app.learner.in or visit website at http://www.learner.in to get more videos, notes & questions.
Views: 74654 learner.in
Balance of payments: Capital account | Foreign exchange and trade | Macroeconomics | Khan Academy
 
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Understanding how changes in foreign ownership of assets effects balance of payments Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/current-capital-account/v/why-current-and-capital-accounts-net-out?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/forex-trade-topic/current-capital-account/v/balance-of-payments-current-account?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 202795 Khan Academy
Balance of Payments (Current Account, Financial Account and Capital Account)
 
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Balance of Payments (Current Account, Financial Account and Capital Account) - A detailed look at the structure of the balance of payments including the current account, financial account and capital account whilst also considering how the balance of payments must balance Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel Theory Video: https://www.youtube.com/watch?v=mvq6Fjzdjd8
Views: 214908 EconplusDal
Investopedia Video: The Balance Of Payments
 
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The Balance of Payments is a record of all payments or monetary transactions between a particular country and other nations during a specific time period. A country's BOP should be zero; that is, the current account should balance with the capital plus the financial accounts. However, statistical discrepancies, differences in accounting practices and exchange-rate fluctuations mean that this rarely happens.
Views: 75924 Investopedia
Balance of Payments Accounts
 
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This Year 2 Macroeconomics topic video looks at the make up of the balance of payments and in particular the difference between the current account and the financial account. A Level Economics Revision Flashcards These superb packs of revision flashcards contain everything you need to cover for AQA & Edexcel A Level Economics A 20% discount is automatically applied if you order 4 or more flashcard packs in the same order! https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards CONNECT WITH TUTOR2U ECONOMICS Web: https://www.tutor2u.net/economics Twitter: tutor2u Economics: https://twitter.com/tutor2uEcon Twitter: Geoff Riley https://twitter.com/tutor2uGeoff Facebook: https://www.facebook.com/tutor2u Instagram: https://www.instagram.com/tutor2uecon/ MORE HELP WITH A LEVEL & IB ECONOMICS Online webinars: https://www.tutor2u.net/economics/events/students/online Revision Workshops: https://www.tutor2u.net/economics/events/students/face-to-face Study Notes on every Topic: https://www.tutor2u.net/economics/reference/study-notes Key topics: https://www.tutor2u.net/economics/topics - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 53116 tutor2u
What is The Balance Of Payments?
 
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Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Balance Of Payment” The balance of payments, also known as balance of international payments, encompasses all transactions between a country's residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The BOP is divided into three main categories: the current account, the capital account and the financial account. Within these three categories are sub-divisions, each of which accounts for a different type of international monetary transaction. The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account. Within the current account are credits and debits on the trade of merchandise, which includes goods such as raw materials and manufactured goods that are bought, sold or given away or possibly in the form of aid. Services refer to receipts from tourism, transportation (like the levy that must be paid in Egypt when a ship passes through the Suez Canal), engineering, business service fees (from lawyers or management consulting, for example) and royalties from patents and copyrights. When combined, goods and services together make up a country's balance of trade. The BOT is typically the biggest bulk of a country's balance of payments as it makes up total imports and exports. If a country has a balance of trade deficit, it imports more than it exports, and if it has a balance of trade surplus, it exports more than it imports. By Barry Norman, Investors Trading Academy
Balance of payments
 
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Balance of payments Source : Banque de France
Views: 9645 banquedefrance
International trade: Balance of payments
 
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Balance of paymernts
Views: 26154 lostmy1
How to solve Balance of Payments Deficits?
 
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Having one of the macroeconomic goals of balance of payments in trouble is no small matter. When balance of payments is in a deficit, it is probably a concerning sign to the government to need to solve it. What are the ways in which a government can rebalance its trade position?
The relationship between the Current Account Balance and Exchange Rates
 
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This lesson will illustrate how trade flows should lead to appreciation and depreciation of currencies in a floating exchange rate system, and then explain how in the case of China, central bank policy aimed at buying large quantities of US government debt keeps the supply of Chinese currency high in the US and the demand for US dollars high in China. This means the dollar remains stronger than it otherwise might relative to the Chinese RMB, contributing to the persistent trade deficits the US exhibits in its trade with China. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 115136 Jason Welker
ch. 39 balance of payments, exchange rates and trade deficits
 
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This screencast has been created with Explain Everything™ Interactive Whiteboard for iPad PowerPoints by McConnell, Brue and Flynn
Views: 1553 Maria Papapavlou
Balance of Payments _ Part1 _ Foreign Exchange Rate _ Mauli Gupta
 
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Excited to share video lectures from the brightest students at IIT & Delhi University. Learner (www.learner.in) is India's largest platform where Students TEACH Students. Download App at http://bit.ly/2l3zRzq and call us at 011-41082172 to get access code. Prepare for Boards for CBSE syllabus, NCERT Pattern, Class 12th. Download app from http://app.learner.in or visit website at http://www.learner.in to get more videos, notes & questions.
Views: 60008 learner.in
Balance of Payments
 
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This animation introduces the learner to the concept of balance of payments and its importance on trade. This is a product of Mexus Education Pvt. Ltd., an education innovations company based in Mumbai, India. http://www.mexuseducation.com, http://www.ikenstore.in
Views: 10453 Iken Edu
Balance of Payments - the Current Account
 
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This lesson introduces the balance of payments and the components of the Current Account Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 17987 Jason Welker
Foreign Trade - Balance of Trade & Payments
 
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This video tutorial looks at foreign trade and how to calculate Balance of Trade & Balance of Payments for an economy.
Views: 1000 ExamRevision
Balance of Payments
 
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Balance of Payments watch more videos at https://www.tutorialspoint.com/videotutorials/index.htm Lecture By: Ms. Madhu Bhatia, Tutorials Point India Private Limited
Y1/IB 12) Current Account of the Balance of Payments
 
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AS/IB 11) Current Account of the Balance of Payments - An understanding of the Balance of Payments focusing on the current account and the four sections within it Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
Views: 100064 EconplusDal
Current Account Deficits (Balance of Payments)
 
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This topic video looks at the structural and cyclical causes of current account deficits and also why a current account deficit can matter for an economy
Views: 17309 tutor2u
Balance of Payments (Bop Part 1): Current account & Capital account ; ECONOMY BITS
 
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ECONOMY BITS -Learn the concepts of Balance of Payments (bop): Current account & Capital account in a very easy to understand way ; Includes topics- Invisibles, balance of trade, Current account deficit, BoP deficit, Forex reserves, Twin Deficit Basic concepts for UPSC Civil services & various competitive exam # General Knowledge Subscribe to https://www.youtube.com/channel/palpalgk
Views: 9548 palpal GK
(B.COM/B.A) Q No. 9(Macro) Define Balance of Payments and its Components.
 
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Q No. 9(Macro) Define Balance of Payments and its Components. If u really like this channel then Like , Share and subscribe(For more free videosss)... Download notes for this video here - https://www.tips4economics.in/2018/06/qn-9-define-balance-of-payment-bop-and.html Recommended Books for Imp Question - Micro Economics - https://amzn.to/2DoS4FC Macro Economics - https://amzn.to/2Dq03lH ________________________________________________________________ Follow us on social media - Join our Whatsapp Group +918929298297 Send name, state, course and which group would you like to be added i.e Micro OR Macro economics. Facebook Myself - https://www.facebook.com/bharats.bisht.1232 Facebook (tips 4 economics) - https://www.facebook.com/Tips-4-Economics-977503552403783/ Twitter - https://twitter.com/tips4economics?s=03 Instagram - https://www.instagram.com/Tips4Economicsindia/
Views: 15856 Tips 4 Economics
Is the US Trade Deficit a Problem?
 
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Gary Clyde Hufbauer explains that at times of high growth, a US trade deficit can actually help the economy—but when economic slowdowns occur, trade deficits can aggravate the problem.
Views: 20567 PetersonInstitute
Forex Markets - Exchange Rates & the Balance of Payments (1/4) | Principles of Macroeconomics
 
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The focus of this video is explaining the foreign exchange market. Other topics in the series: - the foreign exchange market - exchange rates - demand in the foreign exchange market - supply in the foreign exchange market - market equilibrium in the foreign exchange market - changes in demand in the foreign exchange market - changes in supply in the foreign exchange market - changes in the exchange rate - arbitrage - exchange rate policy - flexible exchange rates - fixed exchange rates - crawling peg - balance of payments accounts - borrowers and lenders - debtors and creditors - the global loanable funds market foreign exchange market | foreign exchange market macroeconomics | foreign exchange trading | foreign exchange risk
Views: 4012 Inspirare
Intl Economics - Chapter 14: Exchange Rate Adjustments and the Balance-of-Payments
 
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We have explored how a nation’s Trade Balance enters a period of disequilibrium with corrections automatically instigated in the form of changes to domestic prices, interest rates, and destabilized income and employment levels. Some of the system’s auto-adjustments include economic recession, inflation, loss of jobs, and devalued income in the domestic economy. It works, but it also causes pain. There might be other ways to accomplish the stabilization goal, which may be less distressing. This chapter begins with a look at exchange-rate adjustments and the Balance of Payments. We will cover currency depreciation, or devaluation, affecting a nation’s trade position through its impact on relative prices, incomes, and purchasing power of monetary balances.
Views: 652 Dr. Bill Schlosser
12: BALANCE OF PAYMENTS AND BOP THEORY
 
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Get a totally free virtual trading account here: http://bit.ly/IT-forex-demo3 12: BALANCE OF PAYMENTS AND BOP THEORY- ECONOMIC THEORIES AND MODELS Check out the entire free forex course (in process): http://www.www.informedtrades.com/f7/ The Free Forex Academy is a partner of InformedTrades.com, a community of traders dedicated to learning. At the Free Forex Academy, we are in the beginning stages of creating an entire comprehensive series of courses on forex trading. This is the 12th vid in the fundamentals series. Music: Danse Macabre - Low Strings Finale (Theme) Kevin MacLeod incompetech.com Kevin's Remorse Bank In The Days Practice forex trading with real time charts and live price feeds for free while you learn.
Views: 27214 InformedTrades
ASSESSING THE BALANCE OF PAYMENTS (BoP) POSITION | EXTERNAL SECTOR | SPEED ECONOMY | NEO IAS
 
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IMPORTANCE OF INDIAN ECONOMY FOR YOUR CIVIL SERVICES MAINS EXAMINATION Video Link : https://youtu.be/3PHgjzHDKJ0 HOW TO PREPARE FOR YOUR CIVIL SERVICES MAINS 2018 ? Video Link : https://youtu.be/zUjyuKwBmVo HOW TO PREPARE HISTORY AND CULTURE FOR YOUR MAINS 2018 ? Video Link : https://youtu.be/kKY-XZ77ltA HOW TO PREPARE INDIAN POLITY FOR YOUR MAINS 2018 ? Video Link : https://youtu.be/D-hfniLjR3U To Join our Prelims 2018:- http://bit.do/neo-upscprelims To Join Economy Mains Channel: https://t.me/NEOIASECONOMYMAINS To Join Economy Prelims Channel: https://t.me/NEOIASECONOMYPRELIMS NEO IAS e-learning classes is an online program which aims to create CIVIL SERVANTS for the development of the nation by providing the video series of complete topics that are relevant for the CIVIL SERVICES (IAS/IPS) Exam.
Views: 4812 NEO IAS
What does Current Account mean?
 
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You want to dive deep into the world of finance and management? Visit us: http://www.frankfurt-school.de/en/home/programmes.html?utm_source=youtube&utm_medium=ACQUISITION The current account is part of the balance of payments of a ountry and shows the difference between the value of exports and imports. Germany had a trade surplus of more than 250 bn EUR in 2016. Whereas the United States faced a strong current account deficit of more than 740 bn USD. Strong imbalances could lead to tensions between surplus and deficit countries. Surplus economies enjoy higher employment through their exports. Due to the current account deficit a lack of employment has to be compensated by internal growth in deficit economies. Moreover, deficit countries need to borrow money from the surplus countries in order to finance their deficit. Therefore, surplus countries are always in the role of an international creditor and deficit countries are international debtors. However, a current account deficit is not necessarily a bad thing - deficit countries enjoy a living standard above their overall income level because they consume more than they produce. Whereas surplus economies live below their means because part of the domestically produced goods and services are exported and not demanded in the domestic economy. Besides this there are more reasons for importing goods such as availability, price or quality. In any case the imported goods increase the economic welfare in the deficit countries.
Indian Economy - Balance Of Payments and Economic Survey | UPSC CSE/IAS, SSC CGL, Bank exams
 
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Indian Economy - Balance Of Payments and Economic Survey | UPSC CSE/IAS, SSC CGL, Bank exams Foundation Economics for 2019 based on latest trends: https://unacademy.com/plus/course/foundation-economics-for-2019-based-on-latest-trends/P08PSUIA?utm_source=Youtube_Live&utm_medium=rishijain_26_06_18&utm_campaign=rishijain In this course, Rishi Jain will comprehensively cover entire Indian Economy and elaborately explain topics, which will be helpful in GS-3 Paper-4 Indian Economy in Civil Service Exam. The course will be conducted in Hindi using PPT in English. Weekly Tests will be conducted in English and the Notes will be provided both in Hindi and English. You can follow Rishi Jain here: https://unacademy.com/user/RishiJain-Unacademy?utm_source=Youtube_Live&utm_medium=rishijain_26_06_18&utm_campaign=rishijain The balance of payments (BOP) is the method countries use to monitor all international monetary transactions during a specific period. Usually, the BOP is calculated every quarter and every calendar year. In this session, Rishi Jain will explain about Balance of Payment and also explain about the Economic survey of India for the year 2018. Read more: What Is The Balance Of Payments? | Investopedia https://www.investopedia.com/insights/what-is-the-balance-of-payments/#ixzz5JWCQaBBr Follow us: Investopedia on Facebook Download the Unacademy Learning App here: Android: https://goo.gl/02OhYI iOS: https://goo.gl/efbytP Download the Unacademy Educator App here: Android: https://goo.gl/H4LGHE iOS: https://goo.gl/1FkFHp Do Subscribe and be a part of the community for more such lessons here: https://goo.gl/gycFVs
Views: 5106 Unacademy
Balance of Trade and Payments
 
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Showing how to calculate Balance of trade, Invisible balance, and Balance of Payments
Views: 1854 TDJohnsonCVB
Balance of Payments in Australia
 
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An easy summary describing the balance of payments in Australia suitable for Grade 12 students studying TCE Economics in Tasmania. More videos, tasks, quizzes, handouts and other resources can be found at https://meyerflippedlearning.com/#!/home
Views: 5718 Bernd Meyer
Balance of Payments   Balance of Trade
 
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Answers to ISC and CBSE Board Examination questions For More lessons visit http://economics-nallasivam.blogspot.in Channel for Economics Lessons https://www.youtube.com/c/vellaichamynallasivam Find Answers to important questions https://www.youtube.com/channel/UCLbKY1b9nMFmnmJg39zU5jQ Send your feedback to – [email protected]
Views: 59 Mirdhul Mahadev
107. Fundamentals that Move Currencies - Balance of Payments
 
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View Full Lesson: http://www.informedtrades.com/25278-balance-payments-forex-traders.html Practice trading on a demo trading account: http://bit.ly/IT-forex-demo3 As we discussed briefly in our last lesson it is the interaction of flows of money relating to international trade and investment that ultimately determines the value of a currency over the long term. When demand strengthens for the exports of a particular country and/or investments by foreigners into that country increase, then, all else being equal a currency should strengthen. Conversely, when demand weakens for the exports of a particular country and/or investment by foreigners in that country falls, then, all else being equal a currency should weaken. It is the interaction of the current account and the capital account that measures this, and when combined these make up a country's balance of payments. The balance of payments is very simply the total transactions by a country with all other countries in the world, or in other words the combination of both trade flows and capital flows into one report. By following a country's balance of payments and its related indicators, an FX trader can gain great insight into the potential future direction of a country's currency. To help understand this better lets look at the example of the US Dollar. As we've discussed in previous lessons, the United States has run a very large current account deficit for quite some time, meaning that the country has imported many more goods and services than it has exported. As this chart of the US Dollar Index shows however, for a number of years the US Dollar continued to strengthen, despite this large current account deficit. [CENTER][IMG]http://www.informedtrades.com/images/created/balanceofpayments.jpg[/IMG][/CENTER] As you can see here going up into 2000 although the US ran a persistent current account deficit, the currency overall continued to strengthen before starting to sell off from late 2000 forward. Now I am making some pretty significant generalizations here for simplicities sake, but there are two major reasons that fundamental traders will point to as reasons for this: 1. Although this is starting to change somewhat, there has for many years been a strong demand for US Dollars because the US Dollar is the currency of choice for many major central banks to hold as their reserve currency, with Japan and China being the countries you will hear most about in this regard. This creates a demand for dollars on the capital flows side of the equation that helped to offset the persistent current account deficit going into 2000. 2. As most of you will remember the NASDAQ top which happened in March of 2000 was preceded by a major bull market in the United States, one in which foreign investors were active participants. As we learned about in our lesson on capital flows this also created a large demand for dollars, further helping to offset the large current account deficit. After the sell off of the NASDAQ however, foreign investors fled the US Stock market along with a lot of other traders and investors. As there was no longer as much foreign capital flowing in to offset the large current account deficit, the US Dollar began to weaken. As the dollar began to weaken this created a chain reaction with the central banks who began to diversify into the EURO and other currencies, further exacerbating the dollar's sell off. This created a situation where the current account deficit in the United States remained large (creating a market surplus of US Dollars from an international trade standpoint) and the inflows of capital into the US stock and bond markets began to fall, lowering the demand for dollars which was offsetting the current account deficit. While it is not important to understand all the intricate details at this point, what you do need to understand is that in order to have a feel for the long term fundamentals of a currency, it is important to have a general understanding of what is happening from both a trade flows and a capital flows standpoint, and how these two things interact with one another. As we will learn in coming lessons all fundamentals with currencies can be related back to these two basic concepts, so for your homework assignment for this lesson I encourage you to consider the following question: As the value of the US Dollar falls what effect if any should this have on the large current account deficit in the United States and why? If you would like to post your answer in the comments section of this lesson on InformedTrades.com for discussion this is something that I always encourage.
Views: 23174 InformedTrades
Balance of payments and Current Account Deficit
 
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Balance of Payments, BoP, Current account, Current account deficit, Forex, Forex reserves, Capital account, Balance of trade, Balance of invisibles, exports, imports, can be found here http://youtu.be/jOcVOt1xr60
Views: 45207 Rama Sameer
A2 Economics: Balance of payments in 4mins
 
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For similar videos please visit www.a2withkomilla.blogspot.com. In this video I explain the balance of payments and its components Current Account [trade in goods, trade in services, net investment income and net international transfers], financial account and the capital account. This video is created and presented by Komilla Chadha.
Views: 18807 Komilla Chadha
Balance of payments i. e. BOP (12th, BCOM, MCOM, NET, MBA, PGDBA)
 
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Balance of payments & balance of trade, their differences, components or accounts of BOP, adverse impact of unfavorable bop, corrective measures...
Views: 7790 Swati Garg
E1.2 Balance of Payments and Trade || Currency devaluation & revaluation || Basic Concepts  Economy
 
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Currency depreciation and appreciation || Currency War
Views: 25 UPSC Preparation
ECONOMICS - BALANCE OF PAYMENTS - (CLASS 12)
 
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Its for the students of class 12th for their revision and practice, as board exams are approaching soon.... Subscribe for more helpful lectures on different topics and chapters of economics...
Views: 7836 Nikhil Pandey
DIFFERENCE BETWEEN BALANCE OF TRADE AND BALANCE OF PAYMENTS
 
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BALANCE OF TRADE & BALANCE OF PAYMENTS - CLASS 12 - ECONOMICS - CBSE
 
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This video explains Class 12 Macro Economics topic Balance of Payment(BOP), Balance of Trade(BOT): Components as Current & Capital Accounts; Autonomous & Accomodating Items.
Balance of Payments, James Tompkins
 
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This is the fourth lecture in the "International Finance" series in which I discuss how the dollar is impacted by different types of transactions between foreigners and Americans (or American entities including business, people and Government). These transactions are documented in an accounting statement called the Balance of Payments. An understanding of the relations that exist within the Balance of Payments leads to some interesting discussion. For example, the United States is currently living beyond its means, how is this possible and for how long can this go on? A "trade deficit" is generally thought of as bad news, but what is a flip side, what is an argument that could show a positive side to a trade deficit? What does it mean that the U.S. dollar has safe haven or reserve currency status and is this good or bad? This is another lecture in which the goal is to deepen your understanding (not memorization) of why the dollar goes up and down in value.
Views: 9636 Understanding Finance