Need help on Balance of Payments (1 Viewer)

[haru]

I have an assessment in November which i have i have to write an essay on how government policies (Fiscal, Monetary,Price& Income policy, Trade Policy, Micro and Labour Market Policies) deal with the balance of payments.

Thanks in advance

 

[Sarah168]

what do you need help in?

 

[Rafy]

Quite an unusual assesment for so early in the course. They are basically asking you to write on aspects of the entire course in just the first term? Surely you havent learnt any of those government policies yet?

Although you probally would be doing Balance of payments now.

What is the actual question? what does "deal" pertain too?


Each of those policies affects the different accounts in the bop. (i.e the relationships between the policies and effects of those on the accounts in the BOP)
For example Trade policies: A change in prtection levels could increase/decrease exports or imports, which would affect the Current Account.
Monetary Policy would affect the exchange rate, which would effect things like trade, investment etc

There are many of these relationships within all those policies relating to back to the BOP.

Although if you havent learnt the actual policies yet it may be a difficult task recognising those relationships...

"deal" could be interpreted in many ways

 

[Haku]

there would be a few essays in the resource section for each of the topics. go into word and use auto summarise....to about 10% and link each of them together and ull be fine!

but i think that assessment task is really bullshit. what school u go?

 

[haru]

The questions haven't been given out yet...it's a research/prepared esay task and the question will be given on the day of the assessment.
The teacher gave us on what areas are to be examined and one of the areas is on the current policies.

i go to Epping btw

 

[Haku]

well the best way i see at approaching this is by separating it to supply and demand side influences. ie fiscal controls demand...
well the rest is up to ur BSing skills, just link back how if demand for imports is high there is a worsening in cad due to the worsening of ToT...and that lead to surplus in the capital finacial market.

but considering u haven;t learnt any of these u prob won;t know any of them really. how ur school done globalisation yet?.

 

[haru]

i don't think so...we just did the introduction of the global economy and half way through trade in the global economy

 

[Haku]

well, that is globalisation.

though do u learn the BOP in the first topic?

sorry can;t help u much. but the resource section is always good.

 

[Rafy]

well, that is globalisation.

though do u learn the BOP in the first topic?

sorry can;t help u much. but the resource section is always good.

Balance of Payments is in topic 2 (Australia's place in the global economy) which you'd usually do in term 1 if you do the course in order (which it seems you are haru)

Have you learnt anything on BOP? Oh and the government policies are in the very last topic.

 

[haru]

Balance of Payments is in topic 2 (Australia's place in the global economy) which you'd usually do in term 1 if you do the course in order (which it seems you are haru)

Have you learnt anything on BOP? Oh and the government policies are in the very last topic.

we learned briefly on the BOP and the teacher gave us the current statistics etc...

 

[haru]

what about the relationship between Microeconomic Policy and BOP? Is it deregulation?

 

[Haku]

Well microeconomics is basically dealing with deregulation, and privatisation. But that does not link that much with the BOP

 

[underthebridge]

I would say that trade policy is an area of microeconomic reform, and so any policy which aims to improve international competitiveness and thus imrpove the CAD can be called microeconomic reform that will affect the BoP. Examples are the automotive industry tariff cuts and the textiles, footwear and clothing industry tariff cuts.

 

[haru]

thanks
What about Labour Market Policy, they do the awards and workplace etc.. i don't understand how it help deal with the BOP problems

 

[sk8ie_boi]

well labour market policies tries to keep job in australia, as jobs are kept means that local/domestic production is kept and therefore the demand for imports is reduced .. as a result helps to reduce current account deficit in the balance of payments

 

[=slade=]

try seperating each policy into a different paragragh, give a general outline of the policy (ie demand or supply side focused, goals and how its achieved). then relate to BOP, for eg

MP = dealing with the exchange rate, if it decreases Cad will worsen as imports cost more, and the size of NFD will increase. however if $A ^ then NFD will decrease in aus$ terms thus decreasing outflow on net Y component of CA and decreasing CAD.

like rafy said.

it is a hard Q - especially so early in the course! good luck!

 

[haru]

one more question...
In my Assessment Task information sheet..i have to put the trends of the BoP. Do i have to include about Terms of Trade because i only included the strucutre of Aust. export base and structual change