Current account + Capital and finacial =0 WTF (1 Viewer)

[Scarlet Dream]

I really dont understand why these have to equal zero under a floating exchange rate.

For example during the first year of the asian financial our
exports would have been low, imports high and debt servicing high leading to a high cad.
Yet there wouldnt have been overseas investment here either because of our poor economic outlook.
Therefore they wouldnt have been equal
I So dont undertsand this crappy subject?!?!!?

 

[gnrlies]

I really dont understand why these have to equal zero under a floating exchange rate.

For example during the first year of the asian financial our
exports would have been low, imports high and debt servicing high leading to a high cad.
Yet there wouldnt have been overseas investment here either because of our poor economic outlook.
Therefore they wouldnt have been equal
I So dont undertsand this crappy subject?!?!!?

You know what? In 1997 they were... Here are some figures from the december quarter of 1997.

Current Account = -4254

BOGS = -66
GS Credits = 29967
GS Debits = -30033

Net Income = -4263
Income Credits = 2754
Income Debits = -7017

Current Transfers = 75
CT Credits = 979
CT Debits = -904


Capital and Financial Account = 4254

Capital Account = 269
Capital Credits = 514
Capital Debits = -245

Financial Account = 5376
Net Direct Investment = -1
Net Portfolio Investment = 6931
Net Financial Derivatives = 433
Net Other Investments = -960
Net Reserve Assets = -1027

Net Errors and Omissions = -1391