Approaches to correcting the imbalance in the balance of payments - the case of Algeria -

Abstract

This paper tackled the subject of approaches related to correcting the imbalance in the balance of payments by presenting the theoretical information on each of the elasticities approach, the absorption approach and the monetary approach as they are the most important approaches known to the economic system with the development of its theories over time, which relate to the pursuit of an external balance represented by a balance. Balance of Payments. The research concluded that the different ideas of economic thinkers about money produced three approaches that can be used in order to reach the balance of payments balance, which mostly use the policy of devaluation to achieve this balance, and this is taking into account the nature of the components of the balance of state payments and the size and direction of international economic relations.

Keywords

• elasticities approach
• comprehension approach
• monetary approach
• balance of payments