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Using Boundless Presentations The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. Free to share, print, make copies and changes. Get yours at Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: If you have any questions or problems please

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The Balance of Payments The Current Account The Financial Account The Capital Account Reason for a Zero Balance Capital Flows Open Economy Macroeconomics > Capital Flows Free to share, print, make copies and changes. Get yours at

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Key terms balance of payments A record of all monetary transactions between a country and the rest of the world balance of trade The difference between the monetary value of exports and imports in an economy over a certain period of time. central bank The principal monetary authority of a country or monetary union; it normally regulates the supply of money, issues currency and controls interest rates. credit An addition to certain accounts. debit A sum of money taken out of an account. debt forgiveness The partial or total writing down of debt owed by individuals, corporations, or nations. foreign exchange The changing of currency from one country for currency from another country. interest rate The percentage of an amount of money charged for its use per some period of time (often a year). net exports The difference between the monetary value of exports and imports. Free to share, print, make copies and changes. Get yours at Open Economy Macroeconomics

Exchange Rates Exchange rates are constantly fluctuating to ensure that the quantity of currency supplied equals the quantity demanded. Because of this, the inflows and outflows of money are equal, creating a balance of payments equal to zero. Free to share, print, make copies and changes. Get yours at Wikimedia. "Exchange rates." Public domain View on Boundless.comPublic domainhttp://commons.wikimedia.org/wiki/File:Exchange_rates.JPGView on Boundless.com Open Economy Macroeconomics

Global Current Accounts The map shows the per capita current accounts surpluses and deficits of countries around the world from 1980 to Deeper red implies a higher per capita deficit, while deeper green implies a higher per capita surplus. Free to share, print, make copies and changes. Get yours at Wikipedia. "Cumulative Current Account Balance per capita." Public domain View on Boundless.comPublic domainhttp://en.wikipedia.org/wiki/File:Cumulative_Current_Account_Balance_per_capita.png View on Boundless.com Open Economy Macroeconomics

U.S. Current Account The chart shows the current account deficit of the U.S., both in dollars and as a percent of GDP. Deficits in the current account must be offset by surpluses in the financial and capital accounts. Free to share, print, make copies and changes. Get yours at Wikipedia. "U.S. Trade Deficit Dollars and percentage GDP." CC BY-SA View on Boundless.comCC BY-SAhttp://en.wikipedia.org/wiki/File:U.S._Trade_Deficit_Dollars_and_percentage_GDP.png View on Boundless.com Open Economy Macroeconomics

FDI in Austria Austria has experienced a surplus of foreign direct investment: more foreign investors invest in Austria than Austrian investors do in the rest of the world. This contributes to a financial account surplus. Free to share, print, make copies and changes. Get yours at Wikimedia. "Foreign Direct Investment in Austria." GNU FDL View on Boundless.comGNU FDLhttp://commons.wikimedia.org/wiki/File:Foreign_Direct_Investment_in_Austria.gifView on Boundless.com Open Economy Macroeconomics

Natural Gas Rights If a U.S. company sold its rights to drill for natural gas off the southern coast of the U.S., it would be recorded as a credit in the capital account. Free to share, print, make copies and changes. Get yours at Wikipedia. "US Gulf of Mexico offshore gas." Public domain View on Boundless.comPublic domainhttp://en.wikipedia.org/wiki/File:US_Gulf_of_Mexico_offshore_gas.jpgView on Boundless.com Open Economy Macroeconomics

Attribution Wikipedia. "Balance of payments." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Balance_of_payments Wikibooks. "IB Economics/International Economics/Balance of payments." CC BY-SA BY-SA Wikipedia. "Balance of payments." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Balance_of_payments Wiktionary. "balance of trade." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/balance_of_trade Wikipedia. "debit." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/debit Wikipedia. "credit." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/credit Wikipedia. "Current account." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Current_account Wikipedia. "Balance of payments." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Balance_of_payments Wiktionary. "central bank." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/central_bank Wiktionary. "interest rate." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/interest_rate Wikipedia. "Capital account." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Capital_account Wikipedia. "Balance of payments." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Balance_of_payments Wikipedia. "debt forgiveness." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/debt%20forgiveness Wikipedia. "Capital account." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Capital_account Wikipedia. "Balance of payments." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Balance_of_payments Wiktionary. "foreign exchange." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/foreign_exchange Wikipedia. "net exports." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/net%20exports Free to share, print, make copies and changes. Get yours at Open Economy Macroeconomics

Wikipedia. "Balance of payments." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Balance_of_payments Free to share, print, make copies and changes. Get yours at Open Economy Macroeconomics