This theory is based on the consideration of the external value of a currency is determined on the basis of what occurs to the balance of payments of balances change. If achieved a balance of payments to a state surplus, it means increased demand for the national currency, which leads to a rise in the value of Foreign Affairs and the opposite happens when a deficit in the balance of payments, which indicates that increasing the supply of the national currency, including lead to impairment of Foreign Affairs, and is considered by some writers that period war GS was an indication of the validity of this theory, and to the fact that the value of the German mark at the time were not affected, despite the large increase in the quantity of money and the rate of rotation and the high level of prices, the reason for this is to balance the balance of arithmetic Germany manner that did not allow it to increase its imports from exports in the sense that it did not there was credit or debit balance of payments affect the external value of the currency.
التسميات
Financial concepts