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economy was experiencing the balance of payments' deficits. How come that economic success may go hand by hand with the Current Account or Capital Account deficit? What are the recent actions of the U.S. government to improve the existing situation and are they really effective? Let's start from the very beginning.
Balance of payments is an account that represents all the transactions measured in receipts and payments between a given country and all other countries. It consists of three additional parts: Current Account (exports and imports of goods and services plus investment incomes such as rents, interest, and profits), Capital Account (country's investments abroad and foreign investments into the country), and Balancing account (it's represented by country's official reserves such as gold, foreign and domestic currency reserves, etc...
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