Balance of Payments

5-4-17

• a measure of money inflows as well as outflows in the U.S. and the world

Three Accounts

• Current accounts
• net exports
• exports give credit
• imports give debit
• Net foreign income
• income that is earned by foreign assets
• Net transfers
• Foreign aid
• capital account
• balance of capital ownership
• investments in the U.S.
• Purchase of financial assets by the foreigners
• Official Reserves
• Foreign currency holdings given by the feral reserve sytm.

Balance of Goods and Services 

• goods exports +/- services + net investment + net transfers

Official Reserves

• current account + current capital = 0