the sum of the capital account balance and the current account balance; put another way, the net change in financial reserves of a country, whether in the form of income (current account) or foreign investments (capital account)
For example, in all years since 1980, the USA has run a large-to-huge current account deficit, but in most years it has run a capital account surplus that is almost as big as the current account deficit. As a result, the USA has run a medium-to-large balance of payments deficit over this period.
A commonly-overlooked byproduct of BoP is that it determines whether or not a currency can be used as an international reserve currency. Despite repeated efforts by the governments of the EU and Japan to get their currencies established as such, they have failed to dent the US dollar's global primacy as the money for international transactions. This is because EU member states and Japan (as well as other major economies) run very large surpluses in their BoP. Japan, in particular, imports extremely little, and retains huge reserves rather than invest all of its net export earnings overseas. As a consequence, overseas holdings of euros or yen are much to small to serve as an alternative to the US dollar.
For example, in all years since 1980, the USA has run a large-to-huge current account deficit, but in most years it has run a capital account surplus that is almost as big as the current account deficit. As a result, the USA has run a medium-to-large balance of payments deficit over this period.
A commonly-overlooked byproduct of BoP is that it determines whether or not a currency can be used as an international reserve currency. Despite repeated efforts by the governments of the EU and Japan to get their currencies established as such, they have failed to dent the US dollar's global primacy as the money for international transactions. This is because EU member states and Japan (as well as other major economies) run very large surpluses in their BoP. Japan, in particular, imports extremely little, and retains huge reserves rather than invest all of its net export earnings overseas. As a consequence, overseas holdings of euros or yen are much to small to serve as an alternative to the US dollar.
Since the oil embargo of the 1970's, the US has run a balance of payments deficit because its trade deficit was enormous; prior to the embargo, the US BoP deficit was large because the US exported such an enormous amount of finance capital. As a consequence, the balance of payments deficit has persisted since the end of the Korean War (1953).
by Abu Yahya February 14, 2009
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2. A highly influencial 90s rock band that started in 1898 and then, unfortunately split in 1999. Stephen Malkmus was frontman (guitar and main vocals), backed up by Scott "Spiral Stairs" Kannberg (guitar), Gary Young (drummer in the beginning), Mark Ibold (bass), Steve West (drummer after Young left), and Bob Nastanovich (percussion).
After Pavement fell out, SM developed "Stephen Malkmus & The Jicks" and Spiral Stairs started "Preston School of Industry."
Though five years have gone by since the band's demise, it still releases new editions of albumns and DVDs, thus retaining their impressive legion of fans.
2. A highly influencial 90s rock band that started in 1898 and then, unfortunately split in 1999. Stephen Malkmus was frontman (guitar and main vocals), backed up by Scott "Spiral Stairs" Kannberg (guitar), Gary Young (drummer in the beginning), Mark Ibold (bass), Steve West (drummer after Young left), and Bob Nastanovich (percussion).
After Pavement fell out, SM developed "Stephen Malkmus & The Jicks" and Spiral Stairs started "Preston School of Industry."
Though five years have gone by since the band's demise, it still releases new editions of albumns and DVDs, thus retaining their impressive legion of fans.
by Katherine April 3, 2004
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by Peter Parker November 13, 2003
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Ted: So Jenny promised me if the Mets lost the World Series she would give me a hummer and so I didn't sling my own jelly for a week.
Frank: Ah, the old Balloon Payment, classic.
Frank: Ah, the old Balloon Payment, classic.
by Wally Krunk from the grave March 27, 2016
Get the Balloon Payment mug.noun: mixture of powdered rock that hardens when water is added, often used to make sidewalks out of.
noun 2: A darn good band.
noun 2: A darn good band.
by MoJo April 20, 2003
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Pass me your gloves, theres crime and its never complete
Until you snort it up or shoot it down
Youre never gonna feel free - Pavement lyrics
Pass me your gloves, theres crime and its never complete
Until you snort it up or shoot it down
Youre never gonna feel free - Pavement lyrics
by 3plus3equal6 August 7, 2007
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