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The External Sector

In: The Spanish Economy in the New Europe

Author

Listed:
  • Carmela Martín

    (Jean Monnet Professor of European Integration, Universidad Complutense de Madrid
    FUNCAS (Fundación de las Cajas de Ahorros))

Abstract

The balance of payments of a country reflects all the current, capital and financial transactions of its residents with the residents of the rest of the world and, by extension, offers a global view of the way and extent to which an open economy achieves external equilibrium. In a sense, it also shows up both the weaknesses and strengths of a country’s productive system, and indeed helps identify some of the consequences of the structural problems afflicting an economy. Thus, balance-of-payments disequilibria, and current-account deficits in particular, are always an important point of reference for macroeconomic policy measures.

Suggested Citation

  • Carmela Martín, 2000. "The External Sector," Palgrave Macmillan Books, in: The Spanish Economy in the New Europe, chapter 6, pages 117-130, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59710-5_7
    DOI: 10.1057/9780230597105_7
    as

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