第二章 国际收支 Balance of Payments

Balance of payments ( BOP )

• BOP The record of the economic and financial flows that take place over a specified time period between residents and non-residents of a given country.
• BOP reflects economic and financial flows which are the international transaction in goods, services and financial assets or liabilities.
• Resident is defined to include all economic units domiciled in the reporting country.
  • More than 1 year.
  • Subsidiaries located in local, foreign students studying in local
• Non-resident not domiciled
  • Less than 1 year.
  • IMF, World Bank, United Nation, Foreign embassies, Military bases

Accounts of the Balance of Payments

• Debit entry 借方 records a transaction that results in a domestic resident making a payment aboard ( paid foreign currency )
• Credit entry 贷方 receiving a payment form abroad
• Double-entry bookkeeping two separate and offsetting entries

Current Account

The current account ( CA ) is used to mark the inflow and outflow of goods and services into a country.

• Goods Trade ( BIGGEST BULK OF BOP)
• Services Trade
• Investment Income
• Unilateral Transfer

Capital and Financial Account

KA are where all international capital transfer are recorded
Capital account now refer the acquisition or disposal of financial and non-financial assets and non-produced assets which are needed for production but have not been produced, like a mine used for the extraction of diamonds.
Financial account records the net value of flo of financial assets and similar claims.

• Direct investment ( between affiliated enterprises, 为了所有权)
• Portfolio investment ( 为了卖掉盈利 )
• Other investment
• Net errors an omissions

Official Reserves Account

Official reserves are financial assets that could be used to settle international debts and claims.

• Reserve transaction

Interpratation of BOP

• CA + KA > 0 BOP surplus
• Basic balance = CA + KA
• BOP surplus a country can make more foreign currencies than spend them or the country’s income from the rest of the world exceeds its payments to the rest of the world.
• Trade balance measures a country’s merchandise exports and imports.
• CA surplus means that the country as a whole is increasing its stock of claims on the rest of the world.
• KA surplus implies that the country has a net capital inflows.
  1. Has CA deficit, and it has to borrow from abroad to finance its current consumption.
  2. Foreign think the country’s economic environment is good for investment.
• balance of international indebtedness , a record of the international investment position on the country financial account balance.
• net creditor \ debtor

CA and the macroeconomics

CA = I_f
CA = I_f = S - I_d
CA = Y - ( C + I_d + G ) = Y - E

CA and KA

CA = I_f = S - I_d - ( G - T )