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UNDERSTANDING ECONOMIC DATA

The balance of payments

The balance of payments is included in the list of macroeconomic policy objectives, but what is the balance of payments, why is it important and how do we interpret it? Peter Smith discusses the data

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balance of payments, international trade

Elsewhere in this issue of Economic Review, David Horner discusses how to think about an examination question focused on tackling a deficit on the current account of the balance of payments. Here, I will explore the balance of payments accounts, and how we can pick our way through the data.

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Previous

Exploring the theory of the firm

Next

Demand-side policies

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