Lesson Plan

• Describe the components of the current account and their impact on the balance of payments.
• Explain the main policy instruments (exchange‑rate, fiscal, monetary, trade, capital controls, structural reforms) used to achieve BoP stability.
• Evaluate the short‑ and long‑term effectiveness of each policy, considering side‑effects and country context.

• Projector and screen for slides/diagrams
• Whiteboard and markers
• Handout summarising policy tools and comparative table
• Worksheet with case‑study scenarios for group analysis
• Calculator or spreadsheet software for simple calculations

Begin with a quick recall question about the current‑account components to activate prior knowledge. Explain that today’s focus is on how governments can steer the balance of payments using different policy tools. State that success will be measured by students’ ability to match policies to specific economic contexts and justify their choices.

1. Do‑now (5') – short quiz on current‑account components.
2. Mini‑lecture (10') – overview of policy instruments with diagram of current‑account flows.
3. Group activity (15') – case study of a country with a current‑account deficit; students select a policy mix and complete the worksheet.
4. Whole‑class debrief (10') – groups present recommendations; teacher highlights advantages and limitations using the comparative summary table.
5. Guided analysis (10') – discuss time‑horizons, side‑effects, and external constraints for each policy.
6. Exit ticket (5') – each student writes one policy they consider most suitable for the case and a brief justification.

Summarise the key take‑aways: the diversity of policy options, their varying speed of impact, and the importance of a balanced mix tailored to a country’s context. Collect exit tickets to gauge understanding, and assign a homework task to research a real‑world example where a specific policy helped stabilise the balance of payments.