Chapter 36: Exchange Rates, the Balance of Payments, and Trade DeficitsThis is a featured page

The Balance of Payments
  • Current account
  • Capital account
  • Official Reserves account

Flexible Exchange Rates
  • Depreciation and appreciation
  • Determinants of exchange rates
  • Flexible rates and the balance of payments
  • Disadvantages of flexible exchange rates

Fixed Exchange Rates
  • Use of reserves
  • Trade policies
  • Domestic macroeconomic adjustments

International Exchange-Rate Systems
  • The Bretton Woods System
  • The current system: the managed float

Recent US Trade Deficits
  • Causes of the trade deficits
  • Implications of US trade deficits




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