Saturday, September 17, 2011

Nice graphic showing Financial Capital Inflows into select countries...A great resource for Macroeconomics OR to impress your teacher/professor...

We just completed a unit on the Foreign Exchange Market in AP Macroeconomics last week. This week we are going to look at how the government tracks international flows of currency through "The Balance of Payments".

This interactive graphic shows the Financial Capital Inflows to select countries and the corresponding effects on the currency exchange rates with the US dollar from 2001 and 2011. It will be very helpful when we learn about the Financial/Capital Account side of the Balance of Payments.

Go HERE for the interactive. What do you notice about the relationship between financial capital inflows and the relative value of the currencies of the respective countries?

Source: Wall Street Journal
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