How_Money_Works_-_The_Facts_Visually_Explained

136 137

IM

PO

RT

GOVERNMENT FINANCE AND PUBLIC MONEY

Attempting control

REST OF

THE WORLD

This account monitors

international positions in

local and foreign currency,

bonds, and investment.

The sum of the “balance of

payment” should equal zero,

but this rarely turns out to be

the case.

$1bn - $2bn = $-1bn

Goods and

services

$1bn

Money transfers

and land

$2bn

Capital and

financial accounts

–$2bn

Current account

$2bn

Zero

Currency and

stocks

$1bn

$ $

Financial account

Balance of payment

Goods and

services

$3bn

Money transfers

and land

$1bn

$

Currency and

stocks

$2bn

This account is chiefly for

recording the movement of

money and nonfinancial,

nonproductive assets.

$1bn - $2bn = $-1bn

Capital account

The current account is

mainly concerned with the

international exchange of

goods and services.

$

$3bn - $1bn = $2bn

Current account

$ $

EXPORT

US_136-137_Balance_and_Payments.indd 137 13/10/2016 16:19