Balance of Payment (BoP) – Causes of Disequilibrium and Measures to Rectify
Causes of Disequilibrium in the BoP
- Cyclical fluctuations
- Short fall in the exports
- Economic Development
- Rapid increase in population
- Structural Changes
- Natural Calamites
- International Capital Movements
Measures to Correct Disequilibrium in the BoP
Monetary Measures
- Monetary Policy: The monetary policy is concerned with money supply and credit in the economy. The Central Bank may expand or contract the money supply in the economy through appropriate measures which will affect the prices.
- Fiscal Policy: Fiscal policy is government's policy on income and expenditure. Government incurs development and non - development expenditure,. It gets income through taxation and non - tax sources. Depending upon the situation ....
Do You Want to Read More?
Subscribe Now
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Related Content
Indian Economy
- 1 Minimum Support Price
- 2 Participatory Notes (P-notes)
- 3 Index of Eight Core Industries
- 4 Balance of Payment (BoP) & Balance of Trade
- 5 Convertibility of Rupee
- 6 India’s Merchandise Exports and Merchandise Imports
- 7 Trade-Related Investment Measures (TRIMS)
- 8 Components of Monetary Policy
- 9 Reserve Bank of India (RBI): Mandate & Appointment
- 10 Monetary Policy Committee (MPC) of RBI
