The Balance of Payments | Discussion

Different accounts of the balance of payments

The balance of payments is a statistical system in which all foreign economic operations between the economy of a given country and those of other countries are reflected that occurred during a certain period of time (month, quarter or year). The balance of payments is a report on all international transactions of residents of a country with non-residents (Camdessus, 1948). It includes current account, capital account and financial account. The current account includes goods and services, income (wages and income from investments), transfers (current and capital). The capital account includes capital transfers, acquisition and sale of non-produced non-financial assets. Financial account assumes investments and reserve assets.

The United States a trade deficit

The most important factor in the imbalance of the balance of payments is the United States current account deficit with the rest of the world, which first appeared in 1971-1972 and was it covered by a net inflow of a foreign captain (Bach, 1972). One of the main factors for the continuing current account deficit remains the huge US trade deficit. The deficit of the US current balance of payments is the huge negative balance on the trade balance, which since the end of the 19th century. It was first formed in 1971 and in some other years of the decade, and since the 1980s, it has become chronic. A chronic deficit in the American trade balance suggests that American products cannot withstand price competition with foreign goods on their own market, especially from China and other Asian countries, which increases the cost of imports. The U.S. balance of payments be zero or close to it (with a small statistical discrepancy) due to the development of foreign trade, the level of production, employment and consumption that is based on changes in the state of fiscal and monetary policy, and regulation of the domestic market and exchange rate.

References

Bach, C. (1972). U.S. Balance of Payments Problems and Policies in 1971. Retrieved from https://core.ac.uk/download/pdf/6958649.pdf

Camdessus, M. (1948). BALANCE OF PAYMENTS MANUAL. Retrieved from https://www.imf.org/external/pubs/ft/bopman/bopman.pdf

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 28, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]
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