Module 10: Introduction This module investigates the flow of monetary capital am

Module 10: Introduction
This module investigates the flow of monetary capital among countries. Balance of payments is the measurement of the aggregate flow of monetary capital in and out of a country. Emphasis turns to monetary transactions among countries with different currencies, examining foreign exchange markets and rates of exchange among currencies.
Learning OutcomesEvaluate the implications of balance of payments, surpluses, and deficits on national economies.
Critically evaluate the implications of surplus, balance, and deficit in a current account and capital and financial accounts.
ReadingsRequired:
Chapter 10 in International EconomicsChapter 11 in International EconomicsIbarra, R. & Tellez-Leon, I. (2020). Are all types of capital flows driven by the same factors? Evidence from Mexico. Empirical Economics, 59(1), 461-502. Retrieved from https://doi-org.sdl.idm.oclc.org/10.1007/s00181-019-01624-5
Recommended:
Chapters 10 and 11 PowerPoint slidesHarvey, J. (2019). Exchange rates and the balance of payments: reconciling an inconsistency in Post Keynesian Theory. Journal of Post Keynesian Economics, 42(3), 390-415. https://doi-org.sdl.idm.oclc.org/10.1080/01603477.2018.1548285
Module 10: Discussion
Balance of PaymentsDiscuss KSA’s categories of balance-of-payments.
Discuss why the supply and demand for foreign exchange are considered to be derived schedules.
Discuss the meaning of a surplus (deficit) on the merchandise trade balance, goods and services balance, and current account balance? Discuss how this impacts trade in Saudi Arabia.
Directions:Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 500 word limit.
Reply to at least two discussion posts with comments that further and advance the discussion topic.