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Explain what meant by balance of payment constraint refering to the sa?
Wiki User
∙ 13y ago
In a small open economy such as South Africa which is dependent on imported capital and intermediate goods the balance of payments is an important consideration and should be view as a constraint rather than a policy. In other words should there be a balance of payment deficit policy has to be geared to the elimination of this deficit. Authorities generally use restrictive monetary and fiscal policies to do this. These affect the level of growth and income which in turn lowers the demand for imports.
Therefore the scope of any expansionary fiscal and monetary policies are limited by the balance of payments considerations. (ie the balance of payments is a constraining factor)
Wiki User
∙ 13y ago
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Advantages and disadvantages of balance of payment?
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Advantages and disadvantage of balance of payment?
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Elements of balance of payment?
Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
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Advantages and disadvantage of balance of payment?
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India's balance of payment since 1991?
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Does the balance of payment always balance?
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Elements of balance of payment?
Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
What is balance of trade and payment?
Balance of payment is the difference between the money coming into the country and the money leaving the same country.
What are the effect of deficit in balance of payment in developing countries like Nigeria?
ways of controlling deficit balance of payment in nigeria
Why would it be useful to examine a country's balance of payment data?
why would it be useful to examine a country balance of payment data
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What is the difference between the balance of trade and the balance of payments?
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Are late fees removed from the balance when paid with a regular payment?
Yes, for most loans. For most loans, the late fee is added to the minimum payment required (and the balance at the time of incurring the late fee) and will be deducted from the balance once the payment is received.
