Explain why capital flows cause imbalances

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Reference no: EM13750990

1. Explain why capital flows cause imbalances in the current account.

2. Explain why purchasing, power, parity (PPP) works better in the long run than in the short run.

Each discussion needs 250 word answer focusing on selecting and organizing your most relevant comments in a coherent fashion.

Reference no: EM13750990

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