Balance of payments adjustment mechanism

 

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Balance of payments adjustment mechanism

Any process, especially any automatic one, by which a country with a payments imbalance moves toward balance of payments equilibrium. Under the gold standard, this was the specie flow mechanism.



Similar Matches

Structural adjustment

Structural adjustment

The reallocation of resources (labor and capital) among sectors of the economy in response to changing economic circumstances, including trading conditions, or changes in policy.


Marshallian adjustment

Marshallian adjustment

A market adjustment mechanism in which quantity rises when demand price exceeds supply price and falls when supply price exceeds demand price.


International adjustment process

International adjustment process

1. Any mechanism for change in international markets. 2. The mechanism by which payments imbalances diminish under pegged exchange rates and nonsterilization. Similar to the specie flow mechanism, exchange-market intervention causes money supplies of surplus countries to expand and vice versa, leading to price and interest rate changes that correct the current and capital account imbalances.


Adjustment bond

Adjustment bond

A bond issued in exchange for outstanding bonds when a corporation facing bankruptcy is recapitalized.


Border tax adjustment

Border tax adjustment

Rebate of indirect taxes (taxes on other than direct income, such as a sales tax or VAT) on exported goods and levying of them on imported goods. May distort trade when tax rates differ or when adjustment does not match the tax paid.


Further Suggestions

Adjustment date
Walrasian adjustment
Cumulative Translation Adjustment (CTA) account
Trade adjustment assistance
higher rate adjustment
Adjustment assistance
Structural adjustment program
Adjustment mechanism


 
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