SURVEY OF INTERNATIONAL ECONOMICS COURSE

MODULE 9:
THE BALANCE OF PAYMENTS, THE TWIN-DEFICIT IDENTITY AND THE INTERNATIONAL INVESTMENT POSITION

Textbook Reading:

National Income and the Balance of Payments Accounts
Read Sections 2.4 - 2.8

US Twin Deficit Identity

China Twin Deficit Identity

2018 US Current Account Balances by Region

Presentation Slides:

Balance of Payments Slides

Recent Events/Analysis:

US International Accounts Data
the most recent US data from the US balance of payments accounts including the US international investment position available here from the US Bureau of Economic Analysis. To access the data click on the Interactive Tables link.

Japan Twin Deficit Identity 1982-2014

International Investment Position Data

OVERVIEW

This session defines the balance of payments accounts and highlights the important relationship between the current account (or trade) balance and the financial account balance. The section defines the twin-deficit identity and how to interpret it by looking at recent data for the US and China. We also define and interpret data related to a country's international investment position.

VIDEO LECTURE

This lecture was recorded in Fall 2016. It is 103 minutes long.

ANSWER KEY

Click HERE for answers to the textbook questions.