1 Lecture 2 Balance of Payments

2 Chapter 13 Balance of Payments 13.1 Introduction 13.2 Balance-of-Payments Accounting Principles 13.3 The International Transactions of the US 13.4 Accounting Balances and Disequilibrium in International Transactions 13.5 The Postwar Balance of Payments of the US 13.6 International Investment Position of the US

3 Table 1: U.S. Balance of Payments Accounts in 2006 (billions of dollars)

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5 Figure 2: U.S. Gross Foreign Assets and Liabilities, Source: U.S. Department of Commerce, Bureau of Economic Analysis, June 2007

6 Figure3:Balance of Payments of China in 2007 (billions of Dollars) ItemBalanceCreditDebit I Current Account A. Goods and Services Goods Services B Income C. Current Transfers II Capital and Financial Account A. Capital Account B. Financial Account Direct Investment Portfolio Investment Other Investment III Reserve Assets IV Net Errors and Omissions Source: state administration of foreign exchange of China