Saturday, June 13, 2009

Unit 2: The current account of the Balance of payments

This BBC article reports a continuing decline in the current account surplus in Japan

http://news.bbc.co.uk/1/hi/business/8089477.stm

a) What are the components of the current account of the BoP?
b) What is the effect on the Japanese economy of a declining surplus on its current account?
c) What reason is suggested for the decline in the surplus and why might this have come about?

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