Discuss: A. the Balance of Payments Is a Measure of a a Country's

Essay

Discuss:
a. The balance of payments is a measure of a country's accounting cash flow while the current account is a measure of a country's financial cash flow.
b. In recent years, the United States has had a negative financial cash flow while China has had both a positive financial and accounting cash flow. The opposing balances are related.
c. We should not worry about cash flows for either China or the United States since a country is not a company and having too much or too little cash flow is not important.