BF464: International Finance. The Balance of Payments and International Linkages. CHAPTER OVERVIEW. I. BALANCE-OF-PAYMENT CATEGORIES II. THE INTERNATIONAL FLOW OF GOODS, SERVICES,AND CAPITAL III. COPING WITH CURRENT ACCOUNT DEFICITS. PART I. BALANCE-OF-PAYMENT CATEGORIES.
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The Balance of Payments and International Linkages
2. A nation which spends more than it produces has a net capital inflow producing a capital account surplus.
3. A healthy economy will tend to
run a current account deficit.