What are the uses of balance of payments data

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What are the uses of Balance of Payments data? Is the trade balance sensitive to exchange rates? Are exchange rates sensitive to the current account?

What roles does the current account play regarding the capital account and the national economy? How does the gold standard adjust trade deficits and surpluses?

Give an example detailing all the steps that ensue after a trade deficit is incurred. Are there any parallels lo the monetary model of exchange rates? To a fixed exchange rate regime? Can we use the gold standard today?

Reference no: EM132043016

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