BP-Curve

 

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BP-Curve

In the Mundell-Fleming model, the curve representing balance of payments equilibrium. It is normally upward sloping because an increase in income increases imports while an increase in the interest rate increases capital inflows. The curve is used under pegged exchange rates for effects on the balance of payments and under floating rates for effects on the exchange rate.



Similar Matches

Negative yield curve

Negative yield curve

When the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing.


Community indifference curve

Community indifference curve

One of a family of indifference curves intended to represent the preferences, and sometimes the well-being, of a country as a whole. This is a handy tool for deriving quantities of trade in a two-good model, although its legitimacy depends on the existence of community preferences, which in turn requires very restrictive assumptions. See Leontief (1933).


Theoretical spot rate curve

Theoretical spot rate curve

A curve derived from theoretical considerations as applied to the yields of actually yields Treasury debt securities, because there are no yields Treasury yields yields with a yields greater than one year. Like the yields curve, this is a graphic depiction of the yields.


Elastic offer curve

Elastic offer curve

An offer curve along which import demand is always elastic. It is therefore not backward bending. Contrasts with inelastic offer curve.


Learning curve

Learning curve

A relationship representing either average cost or average product as a function of the accumulated output produced. Usually reflecting learning by doing, the learning curve shows cost falling, or average product rising.


Further Suggestions

Compensated demand curve
Death Valley Curve
Phillips Curve
Social indifference curve
Steepening of the yield curve
Production possibility curve
Demand curve
Flattening of the yield curve
Parallel shift in the yield curve
Lorenz Curve
Riding the yield curve
Transformation curve
Contract curve
Inverted yield curve
Indifference curve
Spot rate curve
Offer curve
Stopping curve refunding rate
Stopping curve
Scitovszky indifference curve
IS-Curve
Reciprocal demand curve
Option Pricing Curve
J-curve
Inelastic offer curve


 
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