International Financial Crises

Current Account: Net income earned overseas through trade, interest, dividends, profits, wages or gifts. (NFI +NX) Bureau of Economic Analysis Balance of Payments Table

Sources of Income

East Asian Crisis IMF World Economic Outlook Database

Private Savings: Disposable Income less Consumption. Public Savings: Budget Balance If Savings is insufficient to finance investment, funds must be made up from global sources. Capital Outflows = Domestic Savings – Domestic Investment

Capital account 39 Capital account transactions, net -152 Financial account 40 U.S.-owned assets abroad, excluding financial derivatives (increase/financial outflow (-)) U.S. official reserve assets U.S. government assets, other than official reserve assets U.S. private assets Foreign-owned assets in the United States, excluding financial derivatives (increase/financial inflow (+)) Foreign official assets in the United States Other foreign assets in the United States Financial derivatives, net 13735

Current account and capital account Public Savings GNI + Transfers -Household Consumption –Taxes Private Savings Taxes - Government Consumption-Transfers Savings – GCF GNI – Consumption – GCF NFI+GDP – Consumption – GCF NFI + NX