We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

International Monetary Economics - Essay Example

Comments (0)
Summary
The purpose of this essay is to critically evaluate the development of Keynesian based concepts and policy alternatives regarding the Balance of Payments. Firstly the paper discusses some of the Keynesian concepts related to the balance of payments. Then it moves onto discuss…
Download full paper
GRAB THE BEST PAPER
International Monetary Economics
Read TextPreview

Extract of sample
International Monetary Economics

Download file to see previous pages... From the Keynesian identity it can be deduced that the current account deficit is caused by the reduction of the private spending and a large budget deficit. This model was applied to the international trade by Keynes.
Keynes designed this model just to deal with the current account deficit that UK was suffering from in the 1960s. Since at that time the foreign capital investment was minimal and there was a fixed exchange rate system in the UK, most of the policies of the Keynesians work according to these two conditions.
The Keynesian model relies greatly on the expenditure changing policies. The expenditure changing policies are designed to change the level of spending in the domestic economy. This can be explained through the income and the adjustment model.
Since the expenditure that is spent on the imports results in a loss of the money and income to the foreign countries, it is considered an injection. The Keynesian model states that in order to maintain or improve the circular flow of income it is important that the expenditure on the imports is reduced. This can be done if the income in the country is reduced.
The domestic income has a direct relation with the imports of a country. This is because as the income in the country increases, there is an increased amount spent on the imports. Also the increase in the income means that the production of the country has increased. The production process may also involve raw materials that are to be imported. As a result the expenditure on the imports would be further increased. In order to reduce the expenditure spent on the imports the Keynesian policies propose the reduction of the domestic production. Since the Keynesian identity is also applicable to the domestic economy (without the net imports), the governments can reduce the government expenditure and reduce the taxes etc to decrease the domestic activity and so the expenditure ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
International monetary
BOP compares the difference in Dollars due to exports and imports in a country and also includes financial exports and imports (Investopedia, 2011). The exchange rate decision of the government policy affects the balance of payment. It is the policy that might turn out to be positive or negative, which might lead to BOP crisis (Williamso, 2004).
6 Pages(1500 words)Essay
International monetary
about evaluating various measures taken up by the government of a country for resolving balance of payment (BoP) crisis. The aim of this paper is to critically evaluate the degree of relationship between those measures. But before presenting an in-depth discussion on this topic area, it would be essential to understand the root cause of the crisis in balance of payment.
6 Pages(1500 words)Essay
Economic and Monetary Union in Europe
This system also guarantees deferred payment”. In the 1940’s America and Britain tried to introduce an international monitory system under the label of Bretton Woods. Bretton Woods system failed to prosper because of many reasons. However, during the latter part of the twentieth century, European countries succeeded in integrating the European world.
5 Pages(1250 words)Assignment
International Monetary Economics
Consequently the study of exchange rates has emerged as a crucial field of economic research since the last few years. This particular field of research has received a tremendous boost, especially in the era of the Bretton Woods in which the foreign rates of exchange became extremely volatile since the inception of the floating rates of exchange since 1973.
6 Pages(1500 words)Essay
Internation Monetary Economics
Seemingly, global imbalances will continue for some time. Dealing with this issue is difficult to achieve as most of the economies are run by external focus on international consistency.A call for cooperation and coordination is of great need. The international systems of finance have identified faults in an attempt to deal with imbalances.
7 Pages(1750 words)Essay
Efficient International Monetary System
The international monetary system can be said to be “the institutional framework within which international payments are made, the movement of capital is accommodated and exchange rates among countries’ currencies are determined” (International finance in practice).
6 Pages(1500 words)Essay
Fiscal and Monetary Policy
(Farinha & Marques 2001). The government often employs fiscal policy, monetary policy or a combination of both to sway the economy back to an equilibrium position. The manner in which the government employs both policies may result to either fiscal or monetary dominance.
10 Pages(2500 words)Essay
Monetary Economics
But, essentially, monetary economic development is a complex historical process, in which monetary economic and noneconomic factors are closely interwoven. It can be best defined as
8 Pages(2000 words)Essay
Inflation targeting in monetary economics
There is an inverse association between the rate of inflation and the interest rates. Therefore, any decision by the central bank to raise or lower the interest rates
3 Pages(750 words)Essay
Monetary economics
f each of the developed countries has formulated and implemented the monetary policies that has affected and influenced the capital inflow and outflow of the capital across the countries all over the world. The role of the floating exchange rate in controlling the inflow and
9 Pages(2250 words)Essay
Let us find you another Essay on topic International Monetary Economics for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us