Balance of payments adjustment mechanism
Balance of payments adjustment mechanismAny 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.
Structural adjustmentStructural 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 adjustmentMarshallian 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 processInternational 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 bondAdjustment bond
A bond issued in exchange for outstanding bonds when a corporation facing bankruptcy is recapitalized.
Border tax adjustmentBorder 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 SuggestionsAdjustment date
Cumulative Translation Adjustment (CTA) account
Trade adjustment assistance
higher rate adjustment
Structural adjustment program