What is accommodating capital
They have nothing to do with foreign exchange payments. Email us your resume on careers managementparadise.
Accommodating capital flows on the other hand are determined by the net consequences of the autonomous items.
These refer to transactions that take place to cover deficit or surplus arising from autonomous transactions. These refer to international economic transactions that take place due to some economic motives like earning income and profit maximisation.
An accommodating transaction on the other hand is undertaken with the motive of settling the imbalance arising out of other transactions. For example a short term capital movement could be a reaction to difference in interest rates between two countries.
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