0
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)
What else can I help you with?
Advantages and disadvantage of balance of payment?
advantages of balance of payment
Advantages and disadvantages of balance of payment?
advantages of balance of payment
Elements of balance of payment?
Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
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
What are the effect of deficit in balance of payment in developing countries like Nigeria?
ways of controlling deficit balance of payment in nigeria
Advantages and disadvantage of balance of payment?
advantages of balance of payment
Advantages and disadvantages of balance of payment?
advantages of balance of payment
India's balance of payment since 1991?
India's balance of payment since 1991
Does the balance of payment always balance?
International Balance of Payments
What are the effect of deficit in balance of payment in developing countries like Nigeria?
ways of controlling deficit balance of payment in nigeria
Elements of balance of payment?
Trade in goods Trade in service Imports and Transfer are the 4 main element of the balance of payment.
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
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 is balance of payment of Pakistan 2011?
Balance of payments in pakistan in 2011
What is Canada balance of trade and balance of payment?
Plus $85 billion
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.
What is the difference between the balance of trade and the balance of payments?
the balance of trade is how much you receive the balance of payment is how much you pay
