,ECS3703 Assignment 2 (COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025; 100% trusted, comprehensive
and complete reliable solution with clear explanation
South African Balance of Payments: South African Balance of
Payments South African current account South African trade
deficit Foreign direct investment in South Africa Capital and
financial account South Africa South Africa economic
imbalances South African foreign reserves South African trade
balance Current account surplus or deficit South African BOP
trends Foreign Exchange Market: Stable foreign exchange
market Unstable foreign exchange market Exchange rate
volatility Forex market equilibrium Foreign exchange market
equilibrium Foreign exchange market intervention Exchange
rate fluctuations Forex demand and supply curves Exchange rate
determination Foreign exchange market stability Elasticity vs.
Absorption Approach: Elasticity approach balance of payments
Absorption approach balance of payments Balance of payments
theories Elasticity approach export demand Absorption approach
current account Economic theories on balance of payments
Trade balance and exchange rates Elasticity of demand for
exports and imports Current account and national income Fiscal
policy and balance of payments Sub-Saharan African Countries
– Macroeconomic Policy: Sub-Saharan African macroeconomic
policy Flexible vs fixed exchange rate systems Covered interest
arbitrage Capital mobility Sub-Saharan Africa Fiscal policy in
Sub-Saharan Africa Sub-Saharan African exchange rate policy
Flexible exchange rate policy Fixed exchange rate policy
, Interest rates and balance of payments Currency arbitrage and
capital flows Optimum Currency Area (OCA): Optimum
Currency Area theory OCA and economic integration OCA
criteria for currency union Currency area and economic shock
OCA in Sub-Saharan Africa Economic structure and currency
areas Monetary union in Sub-Saharan Africa Fiscal policies and
optimum currency area Labor mobility in optimum currency
area Currency area and exchange rate policy South Africa’s Oil
Price Shock Adjustment: South Africa oil price shock Aggregate
demand and aggregate supply model Oil price inflation South
Africa South African economic policies oil shock South Africa’s
response to oil price hikes South African monetary policy
response Fiscal policy South Africa oil prices Oil price impact
on aggregate supply South Africa inflation and output
adjustment South Africa macroeconomic policies for oil shocks
(a) Discuss the South African balance of payments. [10]
The Balance of Payments (BOP) is a record of all economic
transactions between a country and the rest of the world over a
specific period. It comprises the current account, capital
account, and financial account, reflecting trade, income flows,
transfers, and financial investments. South Africa's BOP offers
insight into the country’s international economic health and
competitiveness.
1 2025 - DUE April 2025; 100% trusted, comprehensive
and complete reliable solution with clear explanation
South African Balance of Payments: South African Balance of
Payments South African current account South African trade
deficit Foreign direct investment in South Africa Capital and
financial account South Africa South Africa economic
imbalances South African foreign reserves South African trade
balance Current account surplus or deficit South African BOP
trends Foreign Exchange Market: Stable foreign exchange
market Unstable foreign exchange market Exchange rate
volatility Forex market equilibrium Foreign exchange market
equilibrium Foreign exchange market intervention Exchange
rate fluctuations Forex demand and supply curves Exchange rate
determination Foreign exchange market stability Elasticity vs.
Absorption Approach: Elasticity approach balance of payments
Absorption approach balance of payments Balance of payments
theories Elasticity approach export demand Absorption approach
current account Economic theories on balance of payments
Trade balance and exchange rates Elasticity of demand for
exports and imports Current account and national income Fiscal
policy and balance of payments Sub-Saharan African Countries
– Macroeconomic Policy: Sub-Saharan African macroeconomic
policy Flexible vs fixed exchange rate systems Covered interest
arbitrage Capital mobility Sub-Saharan Africa Fiscal policy in
Sub-Saharan Africa Sub-Saharan African exchange rate policy
Flexible exchange rate policy Fixed exchange rate policy
, Interest rates and balance of payments Currency arbitrage and
capital flows Optimum Currency Area (OCA): Optimum
Currency Area theory OCA and economic integration OCA
criteria for currency union Currency area and economic shock
OCA in Sub-Saharan Africa Economic structure and currency
areas Monetary union in Sub-Saharan Africa Fiscal policies and
optimum currency area Labor mobility in optimum currency
area Currency area and exchange rate policy South Africa’s Oil
Price Shock Adjustment: South Africa oil price shock Aggregate
demand and aggregate supply model Oil price inflation South
Africa South African economic policies oil shock South Africa’s
response to oil price hikes South African monetary policy
response Fiscal policy South Africa oil prices Oil price impact
on aggregate supply South Africa inflation and output
adjustment South Africa macroeconomic policies for oil shocks
(a) Discuss the South African balance of payments. [10]
The Balance of Payments (BOP) is a record of all economic
transactions between a country and the rest of the world over a
specific period. It comprises the current account, capital
account, and financial account, reflecting trade, income flows,
transfers, and financial investments. South Africa's BOP offers
insight into the country’s international economic health and
competitiveness.
