Balance of payments/Addendum: Difference between revisions

From Citizendium
Jump to navigation Jump to search
imported>Nick Gardner
No edit summary
imported>Nick Gardner
 
(One intermediate revision by the same user not shown)
Line 1: Line 1:
{{subpages}}
{{subpages}}
==Definition==


According to the IMF ''Balance of Payments Manual''[http://www.imf.org/external/np/sta/bop/BOPman.pdf] the balance of payments is made up of transactions involving:  goods, services and income; financial claims  and liabilities; and gifts classified as transfers, and comprises  two main groups of accounts:  
According to the IMF ''Balance of Payments Manual''[http://www.imf.org/external/np/sta/bop/BOPman.pdf] the balance of payments is made up of transactions involving:  goods, services and income; financial claims  and liabilities; and gifts classified as transfers, and comprises  two main groups of accounts:  
* a current account pertaining to goods and services, income, and current transfers; and
* a current account pertaining to goods and services, income, and current transfers; and
* a capital and financial account pertaining to  capital transfers and  assets and  financial assets and liabilities.
* a capital and financial account pertaining to  capital transfers and  assets and  financial assets and liabilities.
==Policy implications==
In principle the balance of payments can be influenced by four possible policy measures
* the use of domestic currency reserves;
* action to alter the rate of [[inflation]];
* [[exchange rate]] changes ;
* restrictions upon domestic access to foreign exchange (''[[exchange controls]]'').

Latest revision as of 07:08, 6 June 2009

This article is a stub and thus not approved.
Main Article
Discussion
Related Articles  [?]
Bibliography  [?]
External Links  [?]
Citable Version  [?]
Addendum [?]
 
This addendum is a continuation of the article Balance of payments.

Definition

According to the IMF Balance of Payments Manual[1] the balance of payments is made up of transactions involving: goods, services and income; financial claims and liabilities; and gifts classified as transfers, and comprises two main groups of accounts:

  • a current account pertaining to goods and services, income, and current transfers; and
  • a capital and financial account pertaining to capital transfers and assets and financial assets and liabilities.

Policy implications

In principle the balance of payments can be influenced by four possible policy measures