IDEAS home Printed from
   My bibliography  Save this article

Regulation of a country's balance of payments under global instability


  • V. Sidenko


The article analyzes the evolution of theoretical approaches to the problem of safeguarding external balance in a country's payments, which has exacerbated under the global financial and economic crisis of 2008-09 and the ensuing chronic global instability. The author argues that methods and instruments of policies employed to safeguard external balance of payments must not be standardized and invariable, and that relative significance of different factors shaping BoP is not similar for countries with differing levels of development, market institutions maturity and economic liberalization. External payment imbalances caused primarily by factors of structural origin require regulative solutions associated not with traditional regulation of foreign exchange rates or customs tariffs but with instruments influencing the correction of the structural parameters of the economy as well as consumer preferences inside the country. Globalization and spreading international integration substantially modify conditions for BoP shaping and regulation, producing a considerable increase in the risks of spontaneous changes in relative prices and commercial flows, the virtualization of price-formation at specific global markets, and unexpected movements of major liquid capital stocks. To tackle this problem, it is necessary to enhance ever greater coordination of national macro-economic policies based on the principles commonly agreed at global and regional levels. The obtained results may be used to consolidate the theoretical basis for a policy targeted at BoP regulation under the present-day conditions, especially for countries with explicit structural deformations and high dependence on external markets.

Suggested Citation

  • V. Sidenko, 2014. "Regulation of a country's balance of payments under global instability," Economy and Forecasting, Valeriy Heyets, issue 3, pages 7-19.
  • Handle: RePEc:eip:journl:y:2014:i:3:p:7-19

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2014:i:3:p:7-19. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.