The Balance of Payments

An explainer video defining and describing the Balance of Payments and its various components. Also includes how to calculate the Balance of Payments. Useful for beginner economists and economics students.

[thisisnotmyrealname]

Most helpful video I found on this topic

[khadeejahfalih]

your video has helped me a lot!! tysm!!

[harrystyles]

please post more videos, your videos are helping me alot.

[Nxnm]

This video was extremely insightful and deeply developed my comprehensive understanding of the balance of payments as it relates to economics.

[priyojitdas]

What if balance of payment is not zero?? That goes negetive??

[xXMoneyLensXx]

I am sorry, but I am still confused about this issue. The specific issue for me is that I don't get why the export surplus has to be due to financial investments (or, as investopedia says, "borrowing money from foreign lenders or permitting foreign investment in U.S. assets")? Is it not possible that a country pays for the trade deficit with its own money?

A) If the answer is yes, but that this money counts as an export because of double book accounting (any exchange goes both ways, so import of goods = export of money), how come investopedia and every other site writes that a country needs "borrowing money from foreign lenders or permitting foreign investment in U.S. assets" to pay for a trade imbalance? I mean, couldn't they just pay with their own money?

[Mortum_Rex]

These days it's important to mention the big black elephant in the room too, i.e, offshore accounts. The "errors and omissions" are running in the trillions now.