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1 基本概念
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2 PPT
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3 可汗公开课
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4 视频小课堂
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5 自我测试
Chapter 3 The Balance of Payments
ⅠWhat is the Balance of Payments?
The balance of payments records a country’s trade in goods, services,and financial assets with the rest of the world.
It is an accounting statement based ondouble-entry bookkeeping.
Every transaction is entered on both sides ofthe balance sheet: a credit and a debit.
Credit – entries that bring foreign exchange into the country
Debit – entries that foreign exchanges leave the country.
If the BOP always balances, then why we talkabout the U.S. trade deficit?
For each particular section of the BOP, therecould be an imbalance.
When credits > debits → a surplus
When credits < debits → a deficit
The statement that a country has a deficit orsurplus in its “balance of payments” must refer to some particular class oftransactions.
ⅡCurrent account and capital account
A. Current account
Current account – sometime called “balance of trade”. It measures the value of tradefrom:
Goodimports and good exports
+ Serviceimports and service exports
+ Netreceipts of investment income
+ Unilateraltransfers
CurrentAccount
1. Trade balance = exports – imports
TB > 0 → Exports > Imports → trade surplus
TB < 0 → Exports < Imports → trade deficit
TB = 0 → Exports = Imports → balanced trade
2. Net receipts of investment income = net factor income from abroad.
Foreign payments to capital, labor, and landowned by domestic firms − Domestic payments to capital, labor, and land ownedby foreign firms
3. Unilateral transfer – ex. gifts, pensions, and foreign aid.
B. Financing the current account: Capital account
Capital account – purchases and sales of financial assets (ex. buying private orgovernment bonds, stocks, and bank deposits) and direct investment (ex.purchase of a plant in another country).
Capital account surplus→ Net capital inflow
→ the home country received more capital transfers than it made
→ Net borrower (issuing IOUs to lenders)
Capital account deficit→ Net capital outflow
→ the home country make capital transfers than it receive
Capital account transactions include:
1. Official transactions
any intervention in the foreign exchange market done by officialgovernment sources.
U.S. government assets abroad
Foreign government assets in the U.S.
2. Private transactions
Direct investment: private sector invests in foreign firms
Security purchases: purchases and sells stocks and bonds
Bank claims and liabilities: bankloans and deposits abroad
C. Additional Summary Measures: Official Settlement Balance
1. Official Settlement Balance – change in U.S. official reserves assetsabroad plus change in foreign official assets in the U.S.
It measures the net change in foreignexchange reserves and official government borrowing.
It can serve as a measure for potentialforeign exchange pressure on a dollar.
2. Current Account (CA) and Capital Account (KA)
Since the Balance of Payments always balance,
BOP= CA + KA = 0
CA + KA = 0
Current account surplus ↔ Capital account deficit
Current account deficit ↔ Capital account surplus
D. Statistical Discrepancy (SD)
Because not all international transactionsare properly recorded, the statistical discrepancy (errors) will be added.
CA + KA + SD = 0
SD = − (CA + KA)
