Agile Approach for Methodological Change
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PREPARED BY
DR. KAMALIKA CHAKRABORTY
ASSISTANT PROFESSOR (DEPARTMENT OF ECONOMICS)
KHATRA ADIBASI MAHAVIDYALAYA, BANKURA, WEST BENGAL
DATE OF LECTURE: 6/06/2023
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DEFINITION OF BOP
Balance of Payments is a systematic record of all economic transactions that a country makes
with the rest of the world during a particular year.
COMPONENTS OF BOP
1)
CURRENT ACCOUNT
2)
CAPITAL ACCOUNT
The current account on the balance of payments measures the inflow and outflow of
goods, services, investment incomes and transfer payments.
The main components of the current account are:
Trade in goods (visible trade)
Trade in services (invisible trade), e.g. insurance, banking and other services
Investment incomes, e.g. dividends, interest and migrants remittances from abroad
Net transfers – e.g. International aid, gifts received from foreign countries.
CURRENT ACCOUNT
When
the value of imports is greater than the value of exports then current account is
said to be in deficit.
When
the value of imports is less than the value of exports then the current account is
said to be in surplus.
Components
of Current Account
The capital account measures transfer in assets and liabilities. For example, this may involve a
Indian firm building a factory in the United States. This is counted as a credit on the USA
Capital Account. The Capital account can also involve the purchase of securities and liabilities
.
CAPITAL ACCOUNT
The main components of capital account are:
1. Borrowings and landings to and from abroad
2. Investments to and from abroad
3. Change in Foreign Exchange Reserves
Surplus
in capital account arises when credit items are more than debit items. It indicates
net inflow of capital.
Deficit in capital account arises when debit items are more than credit items. It indicates
net outflow of capital.
Components
of Capital Account
A deficit in the current account must be balanced by a surplus on the capital account.
A surplus in the current account must be balanced by a deficit on the capital account.
In addition to current account and capital account, there is one more element in BOP,
known as ‘Errors and Omissions’. It is the balancing item, which signifies that all
international transactions cannot be recorded accurately.
Thank You
This presentation explores the implementation of Agile methodology for delivering methodological change, specifically focusing on Trade in Goods statistics and adjustments. It covers the Agile Sprint cycle, story mapping, and compilation of Trade in Goods data, highlighting the importance of reliable data for policy decisions like Brexit and UK contributions to the EU budget.
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Presentation Transcript
COURSE: B.Sc. (PROGRAMME) IN ECONOMICS PAPER NAME MACROECONOMICS II TOPIC BALANCE OF PAYMENTS YEAR- THIRD SEMESTER-6 SESSION -2022-2023 DATE OF LECTURE: 6/06/2023 PREPARED BY DR. KAMALIKA CHAKRABORTY ASSISTANT PROFESSOR (DEPARTMENT OF ECONOMICS) KHATRA ADIBASI MAHAVIDYALAYA, BANKURA, WEST BENGAL
DEFINITION OF BOP Balance of Payments is a systematic record of all economic transactions that a country makes with the rest of the world during a particular year. COMPONENTS OF BOP 1) CURRENT ACCOUNT 2) CAPITAL ACCOUNT CURRENT ACCOUNT The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Trade in goods (visible trade) Trade in services (invisible trade), e.g. insurance, banking and other services Investment incomes, e.g. dividends, interest and migrants remittances from abroad Net transfers e.g. International aid, gifts received from foreign countries.
Componentsof Current Account Credit items 1. Visible Trade Exports of goods: 2. Invisible Trade Exports of services: 3. Unilateral Transfers Transfer Receipts: 4. Income Receipts Debit items Imports of goods Net Credit(Credit-Debit) Net Exports of goods (Balance of Trade) Net Exports of services Imports of services Transfer Payments Net Transfer Receipts Income Payments Net Income Receipts Current Receipts (1+2+3+4) Current Payments Current Account Balance When the value of imports is greater than the value of exports then current account is said to be in deficit. When the value of imports is less than the value of exports then the current account is said to be in surplus.
CAPITAL ACCOUNT The capital account measures transfer in assets and liabilities. For example, this may involve a Indian firm building a factory in the United States. This is counted as a credit on the USA Capital Account. The Capital account can also involve the purchase of securities and liabilities. The main components of capital account are: 1. Borrowings and landings to and from abroad 2. Investments to and from abroad 3. Change in Foreign Exchange Reserves Surplus in capital account arises when credit items are more than debit items. It indicates net inflow of capital. Deficit in capital account arises when debit items are more than credit items. It indicates net outflow of capital.
Componentsof Capital Account Credit Items Debit Items Net Credit (Credit Debit) Net Borrowings from abroad Net Investments from abroad Net change in foreign exchange reserves 1. Borrowings from abroadLendings to abroad 2. Investments from abroad 3. Decreases in foreign exchange reserves: Investments to abroad Increases in foreign exchange reserves Capital Receipts (1+2+3) Capital Payments Capital Account Balance A deficit in the current account must be balanced by a surplus on the capital account. A surplus in the current account must be balanced by a deficit on the capital account. In addition to current account and capital account, there is one more element in BOP, known as Errors and Omissions . It is the balancing item, which signifies that all international transactions cannot be recorded accurately.
