What Is the Balance of Payments?
Norman S. Fieleke Vice President and Economist Federal Reserve Bank of Boston

Federal Reserve Bank of Boston July 1976 ● Revised August 1985 and October 1996

Last revised in 1996, this monograph does not reflect significant changes in the U.S. balance of payments accounts made in 1999. For further information on these changes, see Christopher L. Bach, "U.S. International Transactions, Revised Estimates for 1982-98," Survey of Current Business, July 1999, pp. 60-74.

Hypothetical Transactions between U.S. Residents and Foreign Residents (In millions of dollars)
Excess of Debits ( ) or Credits ( )

Line 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Account Exports of goods and services, and income received Goods Services Income on U.S. investments abroad Imports of goods and services, and income paid Goods Services Income on foreign investments in U.S. Unilateral transfers Changes in U.S. claims on foreigners
1

Debits

Credits

60 (1) 49 (1) 1 (3) 10 70 (4) 65 (5) 5

60 49 1 10 70 65 5

(6)

1 61

1 39

100

U.S. official reserve assets Gold Foreign currency balances Other Other U.S. Government claims U.S. private claims Direct investments Other U.S. private ‘‘long-term’’ claims U.S. private short-term claims

(7) 40 (1) 50

40 (3) 10 (2) 50 (6) 1 (4) 10 1

20 21 22 23 24

Changes in foreign claims on U.S. (i.e., in U.S. liabilities to foreign residents)2 Foreign official claims Foreign private short-term claims Other Total Memoranda: Balance on goods and services (lines 2, 3, 6, & 7) Balance on current account (lines 1, 5, & 9) Transactions in U.S. official reserve assets and in foreign official assets in the United States (lines 12, 13, 14, & 21)
1 2

75 (2) 50

125 (8) 25 (8) 25 (4) 55 (7) 40 246 (5) 5

50 25 25 0

246

25 26 27

20 11

25

Including U.S. real property abroad. Including foreign real property in the United States.

Last revised in 1996, this monograph does