Lecture 4(a)
Balance of payments
- Deconsolidation of NIPA Account 4
Consolidated Account 4 format:
T R A N S A CTIO N S WIT H THE R O W
X(g+s) Z(g+s)
Prim inc (factor) receipts Prim inc (factor) pay ments
Net curr transfer receipts
Bal on curr acc
Current receipts fro m R O W Current pay ments to RO W
Bal on curr acc Net cap move ments to RO W
G +F R
Receipts Disburse ments
- Above is the NIPA account for account 4
o Consolidated account
- Balance of payments (BoP) → deconsildated account of the NIPA account 4
o Contains details on the magnitude of every possible transaction that
causes a flow of money (forein exchange) across the borders of a country.
o Includes:
▪ Trade transactions → facilitating reciprocal cross-border flows of
goods and services
▪ Financial transactions → reciprocal cross-border flows of any type of
financial instruments and non-recirporal cross-border transactions.
- Defintion for BoP:
o A systematic statistical summary or record of all economic transactions
between residents in the reporting country (e.g. South Africa) and the rest
of the world during a particular period (quarter or year).
o It includes all transactions by individuals, firms and government agencies
and covers the exchange of physical goods, services, assets, gifts and all
financial claims.
Notes can only be purchased through the following details:
or 0829369077 1
Balance of payments
- Deconsolidation of NIPA Account 4
Consolidated Account 4 format:
T R A N S A CTIO N S WIT H THE R O W
X(g+s) Z(g+s)
Prim inc (factor) receipts Prim inc (factor) pay ments
Net curr transfer receipts
Bal on curr acc
Current receipts fro m R O W Current pay ments to RO W
Bal on curr acc Net cap move ments to RO W
G +F R
Receipts Disburse ments
- Above is the NIPA account for account 4
o Consolidated account
- Balance of payments (BoP) → deconsildated account of the NIPA account 4
o Contains details on the magnitude of every possible transaction that
causes a flow of money (forein exchange) across the borders of a country.
o Includes:
▪ Trade transactions → facilitating reciprocal cross-border flows of
goods and services
▪ Financial transactions → reciprocal cross-border flows of any type of
financial instruments and non-recirporal cross-border transactions.
- Defintion for BoP:
o A systematic statistical summary or record of all economic transactions
between residents in the reporting country (e.g. South Africa) and the rest
of the world during a particular period (quarter or year).
o It includes all transactions by individuals, firms and government agencies
and covers the exchange of physical goods, services, assets, gifts and all
financial claims.
Notes can only be purchased through the following details:
or 0829369077 1
