Autonomous and accommodating transaction

You might have come across this topic a N number of times but might not be knowing what exactly it is? The balance of payments of a country is a systematic account in the form of summarized record of all the economic transactions between residents of a country and non-residents over a given period (normally the BOP covers a period of one year) the account is prepared using the double entry accounting systems with both the debit and credit aspects of each transactions being recorded under different heads within the account which implies that the BOP account always balances (that is basically debit and credit summations are equal).

Well, reading this article will surely add to your pool of knowledge about the Balance of payments.

the different policies adopted for reducing / eliminating BOP deficit are: – the usual monetary policies adopted by the government in such a situation are a) Increase in the interest rates.

Balance of payments takes into account the exchange of both visible and invisible items.

Hence, the balance of payments represents a better picture of a country’s economic transactions with the rest of the world than the Balance of Trade.

If the domestic expenditure of the economy is more than the domestic output , then it results in balance of payment deficit .

the difference represents excess of imports over exports .

consumption expenditures, or pce, is a measure of price changes in consumer goods and services.

can demographics tell us about present and future consumption trends and economic .An autonomous transaction is one undertaken for its own sake in response to the given configuration of prices, exchange rates, interest rates etc, usually in order to realise a profit or reduced costs.It does not take into account the situation elsewhere in the BOP.Discuss ACCOMMODATING & AUTONOMOUS CAPITAL FLOWS within the Financial Management forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; ACCOMMODATING & AUTONOMOUS CAPITAL FLOWS Economists have often found it useful to distinguish between autonomous and accommodating capital flows in ...ACCOMMODATING & AUTONOMOUS CAPITAL FLOWS Economists have often found it useful to distinguish between autonomous and accommodating capital flows in the BOP.is neither increasing nor decreasing through time, Autonomous receipts will equal autonomous payments and induced.

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