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AS Economics (9708) | Policies to Correct Current Account Imbalances | Lecture 38

In this lesson, we cover the final chapter of AS Level Economics Policies to Correct Imbalances in the Current Account of the Balance of Payments. This session walks through all four major policy types and evaluates how effectively each one can reduce a current account deficit or surplus, with detailed discussion of limitations for each.
With clear concept-building, real-world examples and thorough exam-focused evaluations, this lesson completes your AS Economics syllabus preparation!

Topics covered in this video:
● Government Policy Objective (Stability of Current Account)
● Why Governments Welcome Imports & Encourage Surplus
● Fiscal Policy (Contractionary & Expansionary Effects)
● Monetary Policy (Interest Rates, Money Supply & Exchange Rate)
● Supply Side Policies (Deregulation, Education, Investment & Trade Unions)
● Protectionist Policies (Tariffs, Quotas & Their Limitations)
● Limitations of Each Policy (Full Evaluation)

⏱️ TIMESTAMPS

00:00 – Government Policy Objective
04:16 – Why Governments Welcome Imports & Encourage Surplus
09:44 – Fiscal Policy Effects on Current Account
29:40 – Monetary Policy Effects (Expansionary & Contractionary)
37:49 – Supply Side Policies (Deregulation, Education & Investment)
42:58 – Trade Union Reforms & Supply Side Limitations
44:25 – Protectionist Policies (Effects, Trade Wars & Limitations)

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