Topic14_A_BOP_AAP

G interest payments dividends 11 current account

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Unformatted text preview: ’ financial services, consultancy, education • Investment income received (+) or paid (-) (e.g., interest payments, dividends 11 Current Account Categories (cnt.) cnt.) • Net Unilateral Transfers Not related to the transfer of any good or service, nor payments on investments Money workers earn abroad and send to dependents in their home country Foreign workers in the US US workers in foreign countries Foreign or military aid 12 3 3 Capital Account Categories • Changes in U.S. holdings of foreign assets Official reserve assets Generally foreign currency denominated Other (private) assets Increase is (-); outflow of $s (- • Changes in foreign holdings of U.S. assets Official reserve assets Generally $ denominated Other (private) assets Increase is (+); inflow of $s 15 The Components U.S. Merchandise Balance $ Billion, Annualized, SA 100 0 1960:I 1963:I 1966:I 1969:I 1972:I 1975:I 1978:I 1981:I 1984:I 1987:I 1990:I 1993:I 1996:I 1999:I 2002:I 2005:I 2008:I -100 -200 -300 -400 -500 -600 -700 -800 -900 -1,000 U.S. Service Balance $ Billion, Annualized, SA 160 140 120 100 80 60 40 20 0 19 60 : 19 I 63 : 19 I 66 : 19 I 69 :I 19 72 : 19 I 75 : 19 I 78 : 19 I 81 : 19 I 84 : 19 I 87 :I 19 90 : 19 I 93 : 19 I 96 : 19 I 99 : 20 I 02 : 20 I 05 : 20 I 08 :I -20 17 The Components U.S. Income Balance $ Billion, Annualized, SA 160 140 120 100 80 60 40 20 0 19 60 : 19 I 63 : 19 I 66 :I 19 69 : 19 I 72 : 19 I 75 :I 19 78 : 19 I 81 : 19 I 84 : 19 I 87 : 19 I 90 : 19 I 93 :I 19 96 : 19 I 99 : 20 I 02 :I 20 05 : 20 I 08 :I -20 U.S. Indebtedness; $ Billion 20,000 18,000 U.S.-Owned Assets Abroad 16,000 Foreign-Owned Assets in the U.S. 14,000 12,000 10,000 8,000 6,000 4,000 2,000 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 0 18 4 4 Statistical Discrepancy • We know that: Current Account (CA) + Capital Account (CapA) = 0 • The statistical discrepancy can be large ($100 B!) • For many reasons, there will always be statistical discrepancies Delays in the reporting of transactions Some forget to report foreign income Generally only one side of the transac...
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