Net capital outflow equals the trade balance in an open economy.
Is it true that net capital outflow equals the trade balance in an open economy?
The relationship between net capital outflow and the trade balance is an accounting identity in macroeconomics where no citation is required.
Verdict: COMMON KNOWLEDGE · 0 sources for, 0 against · Last checked
The claim states an accounting identity of open-economy macroeconomics (the national income identity, where net capital outflow equals net exports or the trade balance). As a matter of definitional accounting, it is common knowledge and does not depend on empirical papers for verification.
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The claim states an accounting identity of open-economy macroeconomics (the national income identity, where net capital outflow equals net exports or the trade balance). As a matter of definitional accounting, it is common knowledge and does not depend on empirical papers for verification.
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