Sunday, January 25, 2009
The Balance of Payments for the third quarter, 2008, is shown. The source is the Bureau of Economic Analysis. I didn't understand the financial account which I thought was called, "Official Reserve Account." The point 2 billion includes foreign currency, gold, special drawing rights, and other assets and accounts for the .2 discrepency when you sum up BOP components.
I wanted to show that Capital Inflows, KI, were equal to the trade deficit, NX, to show how double entry accounting was used in national income accounts. I have said for a long time that an economist sees something working in reality and wonders if it works in theory.