1. Balance of payments DIFFERENT ACCOUNTS OR CLASSIFICATIONS IN THE BALANCE OF PAYMENTS SURPLUS OR DEFICIT IN INDIVIDUAL PARTS OVERALL ON APPROPRIATE DEFINITIONS THE OVERALL BALANCE OF PAYMENTS MUST BALANCE KEY IS “ APPROP. DEFINITION”

2. BALANCE OF PAYMENTS CONSIDER THE EU Vs USA ALL CREDITS OR EXPORTS, INVESTMENT RECEIPTS OR TOURISM RECEIPTS GENERATE THE FLOW OF DOLLARS THE FLOW OF DOLLARS IS USED TO FINANCE THE EU DEBITS OR IMPORT ITEMS

3. BALANCE OF PAYMENTS TO BUY IMPORTS OR INVEST IN THE US THE EU MUST HAVE DOLLARS MAYBE CURRENT ACCOUNT RECEIPTS ARE LESS THAN CURRENT ACCOUNT SPENDING THEN CAPITAL ACCOUNT MUST PROVIDE THE BALANCE

4. BALANCE OF PAYMENTS CAN NOT SPEND WHAT ONE DOES NOT HAVE HAVE INCLUDES BORROWING AND ALL OTHER SOURCES OF FOREGN EXCHANGE WHAT IF ALL INFLOWS ARE GREATER THAN OUTFLOWS THEN CLEARLY B/P DOES NOT BALANCE ADDITIONAL ITEM IS THE RESERVES OF FOREIGN EXCHANGE

5. BALANCE OF PAYMENTS IF CREDITS FROM ALL TRANSACTIONS EXCEED DEBITS…..AN INCREASE IN THE FOREIGN EXCHANGE RESERVES REVERSE IF CREDITS LESS THAN DEBITS FLOW OUT IS GREATER THAN THE FLOW IN BUT THIS MUST BE FINANCED FROM STOCK OF FOREIGN EXCHANGE CAN NOT USE WHAT DO NOT HAVE

6. BALANCE OF PAYMENTS INCLUDING RESERVES ACCOUNT IN B/P THERE MUST BE BALANCE CREDITS MORE THAN DEBITS THEN RESERVES INCREASE BY THAT SUM DEBITS EXCEED CREDITS RESERVES DROP BY THAT SUM POSSIBILITIES

7. BALANCE OF PAYMENTS NO CHANGE IN RESERVES CURRENT RECEIPTS LESS THAN EXP CAPITAL FLOW MUST PRODUCE A SURPLUS MAYBE FROM BORROWING OR INVESTMENT WHAT IF CAPITAL ACC ALSO IN DEFICIT NOT POSSIBLE BECAUE THE MONEY SPENT ON CURRENT ACC

8. BALANCE OF PAYMENTS CAN FUND SPENDING ON DEBITS FROM EARNINGS OR FROM INVESTMENT OR FROM BORROWING OR FROM RESERVES LIMIT IN LR TO USING RESERVES AUTONOMOUS FLOWS ACCOMODATING FLOWS

9. BALANCE OF PAYMENTS POLICY IMPLICATIONS OF B/P DOMESTIC ECONOMIC ACTIVITY AND EXCHANGE RATE VALUE IF EXPORTS LESS THAN IMPORTS AND THIS FINANCED BY BORROWING REDUCE DOMESTIC ECONOMIC ACTIVITY TO REDUCE IMPORTS

10. DATA INTERPRETATION MULTINATIONAL PRESENCE IRELAND LOW PROFIT TAX LOCATION DESIRABLE TO LOCATE AS MUCH GROUP PROFIT IN IRELAND AS POSSIBLE MULTINATIONALS TO SOME EXTENT TRANSACT INTERNALLY

11. DATA ENGAGE IN PSTP LIMITS TO PSTP IMPLICATIONS FOR DATA AND WHAT THEY INDICATE EXAMPLE REAL…WORLD PRICES….ACCING PRICES

12. DATA IMPORTS LOWER EXPORTS HIGHER MERCHANDISE BALANCE HIGHER PROFIT OUTFLOW HIGHER BETTER EXPORT PERFORMER BASED ON RECORDED DATA THAN “REAL” SITUATION

13. IRISH BALANCE OF PAYMENTS ACCOUNTS DEFINITIONS SCALE CREDIT AND DEBIT FLOWS CURRENT ACC CAPITAL ACC FINANCIAL ACC