The international movement of goods and services recorded in the current account of the balance of payments must be financed in some way. Financing is shown within several groups of balance of payments items, which are sometimes simplified as the balance of capital flows. Capital and financial account balance is a group of balance of […]
Tag: obligation
The concept and essence of "foreign economic relations" and "foreign economic activity"
The modern period of development of the world economy is characterized by further expansion and deepening of foreign economic relations. Through foreign economic relations, an international division of labor is carried out, the purpose of which is to save social labor in the process of production and exchange its results between different countries. Foreign economic […]
Trends in the development of the world monetary system
A characteristic feature of our time is the development of regional economic and monetary integration, primarily in Western Europe. The mechanism of currency integration includes a set of monetary and credit methods of regulation, through which rapprochement and mutual adaptation of national farms and currency systems are carried out. In December 1991, in Maastricht, EU […]
Structural factors
Inflation rate. The higher the inflation rate in the country, the lower the exchange rate of its currency, if other factors do not oppose it. Inflationary depreciation of money causes a decrease in purchasing power and a tendency to drop their exchange rate to the currencies of countries where inflation is lower. This trend is […]