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REVALUATION: The act of increasing the price (exchange rate) of one nation's currency in terms of other currencies. This is done by the government if it wants to raise the price of the country's exports and lower the price of foreign imports. This is an appropriate action if the country is running an undesired trade surplus with other countries. The procedure for revaluation is for the government to buy the nation's currency and/or sell foreign currencies through the foreign exchange market.

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CURRENT ACCOUNT: One of two parts of a nation's balance of payments (the other is capital account). It is a record of all trade, exports and imports, between a nation and the rest of the world. The current account is separated into merchandise, services, and what's called unilateral transfers. The merchandise part is nothing other than the well-known balance of trade. There's also a lesser known balance of services -- the difference between services imported and exported.

     See also | balance of trade | capital account | money | export | import | balance of services | balance of payments | asset | foreign | domestic | foreign aid | capital account surplus | capital account deficit |


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STABILITY

Eliminating macroeconomic fluctuations in prices, employment, and production. Stability is primarily directed toward keeping inflation in check and avoiding high or unpredictable inflation rates that create uncertainty and cause haphazard redistribution of income and wealth. This is one of the five economic goals and one of three macroeconomic goals. The other goals are economic growth, full employment, efficiency, and equity.

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