Balance of payments accounting is a close cousin to GDP accounting in the field of macroeconomics. In fact, both are essential gear in the macroeconomist's toolbox. Whereas a GDP account reports a nation's output and its component parts, a balance of payments (BOP) statement provides a record of the country's cross-border transactions. As in a GDP account, all of the figures that appear in a BOP statement are flows, indicating the value of exports or imports, income receipts or payments, or new foreign borrowing or lending that have occurred over a particular period of time—typically a year. This chapter presents a primer on BOP accounting and the best strategies for reading and interpreting ...
Get A Concise Guide to Macroeconomics, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
