Balance of payments - Macroeconomics

Attached is a presentation that explains the three sections of the balance of payments. The main theme considered is the four sections of the current account and there are opportunities for students to consolidate their understanding as well as how to calculate changes in the balance of payments. The presentation focuses heavily on the causes of a balance of payments deficit and then implications on aggregate demand and the macroeconomic goals. There is also an explanation of the importance of redistributing income and economic stability. The presentation lasts approximately two hours. There is also a worksheet attached for the students to contextually apply the UK’s current balance of payments deficit to the wider macroeconomic goals.