The Balance Of Payments
the balance of payments or bop is a record of all payments or monetary transactions between a particular country and other nations during a specific time period. it provides a useful glimpse ? economic relationships between different countries around the world. the bop account is broken down into three separate categories. the current account includes any exchange of finished goods and services such as tourism for consumption purposes. when nolly nation sells goods or services to gholly galaxy, the payments made to nolly are recorded as a credit to nolly's bop and a debit to gholly's bop account. the capital account tracks movement of capital going in and out of a country for investment purposes. when a ghollian migrates to nolly nation, the items of value he moves into the nation with him represents a credit to nolly's account and a debit to gholly's bop account. lastly, the financial account records payment flows related to the change of ownership in international financial assets and liabilities. the flows include direct investment, portfolio investment and reserved assets which are purchased and sold only by monetary authorities. when nollians invest in foreign securities from gholly galaxy, this effects a debit to nolly's bop and a credit to gholly's bop account. a country's bop should be zero. that is, the current account should balance with the capital plus the financial accounts. however, statistics' discrepancies, differences in accounting practices and exchange rate fluctuations mean that this really happens. one major benefit of the balance of payments is that it allows a country to identify any long-term trends that could be troublesome to its economy. by understanding its bop, a nation has the potential to create policies that will put it on the right track.
- balance of payment（bop）・・・国際収支
- current account・・・経常収支
- capital account・・・資本収支
- financial account・・・投資収支