UNFAVORABLE BALANCE OF PAYMENTS: An imbalance in a nation's balance of payments in which payments made by the country exceed payments received by the country. This is also termed a balance of payments deficit. It's considered unfavorable because more currency is flowing out of the country than is flowing in. Such an unequal flow of currency will reduce the supply of money in the nation and subsequently cause an increase in the exchange rate relative to the currencies of other nations. This then has implications for inflation, unemployment, production, and other facets of the domestic economy. A balance of trade deficit is often the source of a balance of payments deficit, but other payments can turn a balance of trade deficit into a balance of payments surplus.

     See also | balance of payments | money supply | currency | foreign exchange market | exchange rate | balance of payments surplus | balance of trade deficit | international finance |

UNFAVORABLE BALANCE OF PAYMENTS, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: May 22, 2025].

Back to the GLOSS*arama

The mental and physical human efforts used in the production of goods and services. This is one of four basic categories of resources, or factors of production. The other three are capital, land, and entrepreneurship.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time at a garage sale trying to buy either looseleaf notebook paper or a three-hole paper punch. Be on the lookout for defective microphones.
Your Complete Scope

This isn't me! What am I?

-- Horace, Ancient Roman poet

User Feedback