ECON-E 202 Lecture Notes - Lecture 26: Special Drawing Rights, International Monetary Fund, Foreign Exchange Market
Document Summary
Is an economy that has interactions in trade or finance with other economies. Is an economy that has no interactions in trade or finance with other economies. Is the record of a country"s trade with other countries in goods, services and assets. The balance of payments includes the value of: goods and services, sell more services to people in other countries, than we import, transfers of financial claims: stocks, bonds, loans and ownership rights. An important note is that the balance of payments is an identity: we will see that when there is no borrowing/lending, trade deficits must be balanced with other trade surpluses within the balance of payment accounts. Current account: records a country"s (1) net exports, (2) net investment income, and (3) net transfers, more important to report whole current account. Is the difference between the value of the goods a country exports and the value of the goods a country imports.
