One of the more important measures in regard to international economics is the balance of payments. Think of it as a national accounting measure that looks at the flow of goods and services into and out of an economy in a given period of time.It also shows capital flows into and out of a country. Until 1980, the United States tended to run a positive-to-neutral balance of payments position and was a creditor nation. In the course of the past 30 years, the United States has moved to a negative balance of payments and to being a debtor nation.

• What is the importance of the balance of payments as an accountingmeasure?
• What are the current account and its components and the capital and financial accounts and their components?
• How important is the U.S. deficit in traded goods in regard to the balance of payments?

Here are some articles to reference:

• The Changing Nature of the U.S. Balance of Payments - newyorkfed.org/medialibray/media/research/current_issues/ci14-4.pdf
• Balance of Payments - Econlib.org/library/enc/balanceofpayments.html