Why does the balance of payments accounting system always balance to 0 (zero) in theory?

1 answer

Answer

1233138

2026-03-31 20:45

+ Follow

The balance of payments accounting system always balances to zero in theory because every transaction involving a country's economy is accounted for as either a credit or a debit, ensuring that the total inflows and outflows of money are equal. This balance reflects the overall economic relationship between a country and the rest of the world.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.