How does disequilibrium occur in the balance of payments? Describe the methods of correcting the disequilibrium with examples.
Introduction: In the vast arena of international trade and finance, the balance of payments (BoP) stands as a crucial record, tracking all economic transactions between one country and the rest of the world. A smooth sailing BoP is everyone’s dream, but when it hits the rough seas of disequilibrium, it can spark major financial concerns. …