Open Economy Macroeconomics

Abstract

The balance of payments and the international investment position are designed to measure and present an economy’s external activity engaged with the rest of the world, such as flows of goods, services and capital during certain periods and the accumulated stocks of assets or liabilities at certain times. Analysis of the balance of payments, which extends national accounts for a closed economy to national accounts for an open economy, demonstrates a country’s international economic linkages with the rest of the world.