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Interpreting the Balance of Payments

In: Ecological Economics and Finance

Author

Listed:
  • Thomas Lagoarde-Ségot

    (Kedge Business School)

Abstract

In an open economy, the accounting equilibrium comprises three macroeconomic sectors: a private sector (resident companies and households); a public sector (the various branches of government); and the rest of the world (foreign companies, households, and governments). Economic relations with the rest of the world are recorded in a key document: the balance of payments. The method of calculating this document is the responsibility of the International Monetary Fund, which applies it to all its member countries. The balance of payments records all payment flows exchanged between a country and the rest of the world over the course of a calendar year.

Suggested Citation

  • Thomas Lagoarde-Ségot, 2025. "Interpreting the Balance of Payments," Springer Books, in: Thomas Lagoarde-Ségot (ed.), Ecological Economics and Finance, edition 0, chapter 0, pages 73-82, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-71249-4_8
    DOI: 10.1007/978-3-031-71249-4_8
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