Mutual relations of balance of payments, exchange rate and foreign exchange reserves

This work assesses influence of balance of payments on exchange rate movement, whether nominal or real, and feed back. First part defines balance of payments and content of its items. Further, main theories of exchange rate movements are presented. In the ensuing empirical section economies of similiar type are compared, firstly two large, rather open economies of USA and United Kingdom. The next comparation analyzes differences between two small, rather open economies, and that is Czech republic and Switzerland