Shortfall in the balance of trade, balance of payments, or government budgets.
Deficit
Related Terms
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The Balance of Trade is an economic indicator that measures the difference in value between a country’s exports and imports over a specified period.
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Trade Balance measures the difference in value between the value of a nation’s exports and imports.
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The balance of payments is a systematic record of all economic transactions between a country and the rest of the world over a specified period.
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The Current Account is the difference between a nation’s total exports of goods, services, and transfers, versus its total imports.
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A floating exchange rate refers to currencies that are allowed to change freely, as influenced by an open market, rather than being fixed to the value of another currency. A floating exchange rate system determines a currency’s value in relation to other currencies. Unlike fixed exchange rates, these currencies are in continuous fluctuation and float freely. […]