Balance of Payments
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What the FUCK is with your beard? .....
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Woah bro... your beard is awesome...
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You know his good at economics coz hes a jew
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thank god my teacher doesn't have a beard like that. i would be sooo.. distracted!
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Please MechamDee do a H-O model !!! My teacher doesn't care about us failing the big quiz.. Plus I like the way your hair is professor at the back... go forth and rock at the front
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to OP: May I assume that these equations, them being either KA+CA=0 or Kout-Kin=X-M, have to be balanced in order for the currency exchange rate to remain unchanged?? and if any shift causing imbalance of the accounts will be reflected in exchange rate?? I would appreciate your answer.
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Awesome! helped me alot for my oral exam.
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Yes. Those conditions, which are essentially the same, are the equilibrium conditions for the foreign exchange market. If they do not hold then the market is in a state of disequilibrium and forces will cause a change in the exchange rate (or require action by a monetary authority to prevent the incipient appreciation/depreciation of the country's currency).
MechamDee 8 months ago