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Current Account Deficit Consequences

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Current Account Deficit Consequences - An understanding of the consequences of a current account deficit on the balance of payments
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Text Comments (52)
Fatima Mughal (2 months ago)
What does WIDEC stand for?
ayoub siddeek (2 months ago)
weak exchange rate imports dear exports cheaper
Omor Rahman (2 months ago)
Is another consequence protectionist measures eg tariffs to reduce imports. Then create a chain about how households will experience a greater cost of imports which will reduce quality of lifes
Omor Rahman (1 month ago)
George B make sure you let me know what grade you get in economics you fag
Omor Rahman (1 month ago)
George B youre some retard, when a country has a current account deficit they can use expenditure switching policies such as tariffs to reduce the imports undergone by households. As a consequence of the tariff households will pay higher prices for their imports and in the uk we have a high MPI so households will lose out from higher prices which will effect the lower incomes more. Come back to this message when you get your results and lets see what ur on
George B (1 month ago)
hope you didnt write that in your exam :( LMao
George B (1 month ago)
no, lol
Joshua Osei (4 months ago)
Absolutely sensational Dal
Sean 'Puff Daddy' Combs (5 months ago)
What is the relationship between not being issued money by the investors who buy bonds and people losing their faith in the currency?
Harsh Kumar (1 year ago)
If i achieve my offer from LSE and get in this summer, you are the sole reason why!
Cbez (2 months ago)
Did you get in
HMohide (1 year ago)
could lower confidence from possibly defaulting... lead to inward LRAS as firms move away and seize capital to their new location alongside causing unemployment?
Michelle Pun (1 year ago)
I understand that countries sell their bonds, etc so the finance account can become a surplus, but I thought they're gaining money, how is it borrowing money?
Tom Barnes (1 year ago)
Michelle Pun well what you’re selling is a promise to pay more money back in the future, they are paying you money now and you will pay back later - it’s a debt.
Bob Pen (1 year ago)
you are soooooo amazing. thank you so much honestly
alexander davidson (1 year ago)
Excellent video - good points and very nice explanation
Ahsan Jafar (1 year ago)
I just have on question like if there is an decrease in the CAD(Current Account Deficit) so investing in Equity is an appropriate option or not??
thank u so much
Darude Chang (2 years ago)
my passion for econs skyrockets when i learn it from your videos. the more i learn about economics, the more i realize it's absolute usefulness and beauty. One can be so much wiser from studying it. Thanks for making the learning process so so so so so much easier!!!
Student Vlogs - Dylan (2 years ago)
Came due to your prediction video!!
Italian Mofo (2 years ago)
bello mike
faiz bandeali (2 years ago)
seema phougat (2 years ago)
how globalization affects current account deficit?
anusha de silva (2 years ago)
sir ,my teacher said depriciation is when for ex today currency is $1=0.08$ and tom if the rate is $1=0.09 is it wrong?
Abu Taaher Khan (3 years ago)
Can you explain what you mean with WIDEC? or send me the link to the video that does
Max Antcliff (3 years ago)
the one i learnt was wpidec - Weak Pound = Imports Dearer, Exports Cheaper. ( basically the same as widec) it means that if sterling depreciates, it is worth less so can buy less of other currencies. hence to buy goods from abroad you must use more of your domestic currency (so imports dearer) and similarly if euros can now buy more sterling, people in france buying uk goods get them for less so exports are cheaper
Sayma Ali (3 years ago)
how do you buy debt
Jonathan Allison (2 months ago)
Richard Ellis (3 years ago)
why does fear of default lead to people moving their money away from the country?
Khawa Karpo (1 year ago)
Max Antcliff Bravo 👏 loved your e.g.
Richard Ellis (3 years ago)
+Max Antcliff thanks:)
Max Antcliff (3 years ago)
if i lent you money and then i heard a rumour from a mate that he lent you money, but you didnt pay him back, then i will demand my money back form you
Conor McCracken (3 years ago)
Hey thank you very much for all these videos!!
Tamanna (3 years ago)
what do you mean by issuing debt
Tamanna (3 years ago)
+EconplusDal thank you
EconplusDal (3 years ago)
+Tamanna Ali Issuing, bonds, shares, derivatives or other financial instruments in order to access cash to finance a current account deficit
Courtney Smith (3 years ago)
Are you Indian
Khawa Karpo (1 year ago)
Conor McCracken hahahahah
India doesn't have one ;P
Ya right
Conor McCracken (3 years ago)
+Courtney Smith the fuck does this have to do with current account deficit?
BADAL SONAWANE (3 years ago)
somewhere around 4th minute he said wen country imports more than exports den the supply of currency increases ..! how??
BADAL SONAWANE (3 years ago)
+EconplusDal ohh got it.. thx for replying :D
EconplusDal (3 years ago)
+BADAL SONAWANE With greater imports, a country must exchange (sell) its currency for foreign currency. This increases the supply, shifting the supply curve of the currency to the right, which puts downward pressure on the exchange rate, it weakens.
Hassan Khalid (3 years ago)
Ho Chang Tat (3 years ago)
Awesome! Made it clear why current account deficit matters. Google gave me long stories that is confusing!
Jeremy Warner (4 years ago)
As a percentage, do you know how much the current account is of GDP?  Thanks
AliWu (2 months ago)
Jeremy Warner 18% better late than never
Torunn Landsgaard (4 years ago)
Great videos- you explain it very well!
sophia martin (4 years ago)
What constitutes a very large current account deficit? How much percentage of GDP does it have to be? Thanks
sophia martin (4 years ago)
Hello! Thank you so much for your videos. I have my IB economics exam in a few days and this is SO much better than revising from my book
FalcaoXTZ (4 years ago)
Perfect for the OCR Economics 2014 paper

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