Balance of payments theory

Japanese: 国際収支理論 - こくさいしゅうしりろん

A theory that analyzes how a country's overall external settlement position changes as a result of all international economic transactions conducted by various economic agents during a certain period of time, and clarifies the implications for macroeconomic policy. Under a fixed exchange rate system, in order to maintain exchange rate stability, the monetary authority must fill the imbalance in supply and demand of external settlement means caused by deficits and surpluses in the balance of payments. Under a floating exchange rate system, deficits and surpluses in the balance of payments are closely related to fluctuations in exchange rates.

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

さまざまな経済主体が一定期間中に行うすべての国際経済取引の結果，一国全体として対外決済上の地位がどのように変化するかを分析し，そのマクロ経済政策上の含意を明らかにするための理論。固定為替相場制のもとでは，為替相場の安定を維持するために通貨当局は国際収支の赤字･黒字によって生じる対外決済手段の需給のアンバランスを埋めなければならない。また変動為替相場制のもとでは，国際収支の赤字･黒字は為替相場の変動と密接な関係がある。

出典　株式会社平凡社世界大百科事典第２版について　情報

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