keep_running
New member
- Jun 18, 2026
- 0
- 0
“Thinking in this way. any deficit in the current account must be
made up by a surplus in the combined capital account. That is. the excess of imports
over exporlS must be offset by sales of assets and debt incurred to foreign entities, A
current account surplus is similarly offset by purchases of foreign physical or financial
assets.”
I do not get why the current and capital accounts have to cross eachother out. How does this relate to the definition of the balance of payments?
made up by a surplus in the combined capital account. That is. the excess of imports
over exporlS must be offset by sales of assets and debt incurred to foreign entities, A
current account surplus is similarly offset by purchases of foreign physical or financial
assets.”
I do not get why the current and capital accounts have to cross eachother out. How does this relate to the definition of the balance of payments?