Top definition
Capital (in economics) refers to either equipment used to produce goods (tools, factory buildings, infrastructure) or money that is currently used to pay for business ventures. Capital accounts refers to the balance of investment that a country receives from, or supplies to, other countries over the course of a business period. So, for example, in the course of a year the people in country A may buy $1.5 million in shares and bonds from overseas, and sell $900,000 of the same (for net capital exports of $600K); meanwhile, foreigners might buy $1.2 million in shares, etc., while selling $800K of the same (capital imports of $400K). The country therefore exports $600K, imports $400K, and runs a net capital account balance of -$200K.

Over the short run, a capital account surplus can offset a current account deficit.
For the last 30 years the USA has run a surplus in its capital accounts, partly offsetting a gigantic deficit in current accounts.
by abu yahya August 03, 2008
Get the mug
Get a capital accounts mug for your barber Yasemin.
(n.) Rarely accessed account that records only permanent changes in capital, such as drawings or withdrawl of capital.
The interest on my capital a/c is given to the current account.
by Kung-Fu Jesus May 06, 2004
Get the mug
Get a capital account mug for your guy Riley.