[2] Two lines represent a country's respective internal (employment vs. unemployment) and external (current account deficit vs. current account surplus) balance with the axes representing relative domestic costs and the country's fiscal deficit.
When there is a BOP disequilibrium, either by the market forces or policy measures for readjustments, SWAN model is helpful.
To cure the Inflation, we would use Contractionary monetary policy which would lower it down and bring the economy to an equilibrium point.
For Current account surplus, we would overvalue the currency so that the exports are diminished.
So a policy measure might just worsen the condition by taking, the economy, past the equilibrium point.