What is Capital Account Balance?


1.

the net purchase of financial assets in a country by foreigners. Put another way, the capital account balance is the net influx of money from overseas investors. It includes net purchases of domestic financial assets by foreigners minus net purchases of foreign financial assets by domestic citizens.

The capital account balance over short periods of time (e.g., a fortnight) is extremely volatile; over a period of a year, however, it usually offsets the current account balance. For example, in all years since 1980, the USA has run a large-to-huge current account deficit, but in most years it has run a capital account surplus that is almost as big as the current account deficit.

The capital account balance often permits a huge trade deficitto persist over several decades without a significant fall in the exchange rate of a nation's currency.

See capital account, trade balance, external balance, nipa


24

Random Words:

1. to owe more then you have "I'm upside down on my car loan." "I know I owe you money but I'm kinda upside down..
1. The Internet. 1. Viktor Says, "DAMN YOU INTERNUTTERS!!!" 2. Affinity Says, "I AM QUITTIN' THE INTERNUTTERS!" ..
1. An ego brain is someone that thinks they are the best thing in the world. They also belive they can do anything, at anytime, and anywher..