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April 5, 2023

What is the welfare consequence of a CA policy such as a capital control policy?

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Current Account Determination

 What determines trade balances (TB) and current account (CA) balances?
What are the effects of various economic shocks on TB and CA?
What is the welfare consequence of a CA policy such as a capital control policy?

Tagged Account Determination, Assignment help, capital control policy, Electronic Benefit Transfer card, Homework help

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Is the timing of the Great Moderation and the emergence of protracted current account deficits pure coincidence?
Now assume that in period 1, the country instead runs a much larger current account deficit of 10 percent of GDP. Find the country’s net foreign asset position at the end of period 1, B1. Is the country living beyond its means? If so, show why.

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