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Monetary policy to change interest rates. i.e Lowering interest rates would reduce hot money (foreign saving money in UK banks). This would reduce demand for the pound. Causing depreciation. This would make imports more expensive, improving the current account balance.
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Policies to reduce price level (e.g contractionary fiscal or contractionary monetary) hence making exports cheaper and more competitive. Increased exports improve current account balance.
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Tariffs on Imports to reduce demand for imports
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e.g customer service, high quality goods, unique products... All of which would make exports more competitive, improving current account balance. Germany is an example of a country with a current account surplus as a result of non-price factors
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Monetary policy to change interest rates. i.e Lowering interest rates would reduce hot money (foreign saving money in UK banks). This would reduce demand for the pound. Causing depreciation. This would make imports more expensive, improving the current account balance.
•
Policies to reduce price level (e.g contractionary fiscal or contractionary monetary) hence making exports cheaper and more competitive. Increased exports improve current account balance.
•
Tariffs on Imports to reduce demand for imports
•
e.g customer service, high quality goods, unique products... All of which would make exports more competitive, improving current account balance. Germany is an example of a country with a current account surplus as a result of non-price factors