Question

What is the mechanism for equilibration?

Answer 1

The Equilibrating Mechanism. We now turn to the question of how the equality of the desired net capital outflow and the desired current account surplus is brought about. As you should know from the previous topic, this is the same equilibrating mechanism that brings about equality aggregate demand and supply.

hope it clarifies ur doubt dear friend..

Answer 2

Equilibration of activities rather than quiescence is the actual result of satisfied desire. Human Nature and Conduct.