Source: Independent Institute
by Edward J López & Jon Murphy
“A country’s overall BOP must sum to zero. That is by accounting definition. When domestic buyers send money out to bring imports in (the current account), foreign exporters return money domestically as investment (the capital & financial account). The BOP is a form of double-entry bookkeeping applied to international trade. But it also means that the current account—composed mostly of trade in goods and services—can be in deficit, while the capital & financial account is in surplus.” (09/23/26)
https://www.independent.org/article/2026/09/23/unbalanced-treatment-balance-of-payments/