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Development, international balances of payments, and the economic liberalisation of an economy of over a billion people--these are complicated matters.
But jump ahead to the present, and the debt-to-G.D.P. ratio is moving ever higher, and we have long had highly unfavorable balances of payments.
For example, visiting foreign students spend significant amounts of money on goods and services, improving the balances of payments and raising GDP (gross domestic product).
The complementary surplus this generated in the developing countries from which the imports came enabled them to pay the interest and profit on British capital without straining their balances of payments.
Even at the end of the 1930s' stimulus, the figure was still well less than half of G.D.P. Further, during the 1920s and 1930s, the nation had favorable balances of payments.
There is some precedent for a new loan mechanism: The European Commission has already borrowed from the financial markets and re-lent the money to help countries including Hungary and Latvia cope with difficulties in their balances of payments.
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Chatter spread of a balance-of-payments problem.
Devaluation is employed to eliminate persistent balance-of-payments deficits.
Third, Russia has a balance-of-payments surplus.
The will was there; and, albeit with aching slowness, the balance-of-payments fruits came forth.
It helped get the European economies through a balance-of-payments crisis, to be sure.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com