chapter  8
The problem of the balance of payments
Pages 19

The last chapter dealt with various concepts and definitions relevant to the balance of international payments of a country. The balance-of-payments concept, however, is much more general. Any group of people and firms (and Governments) has a balance of payments and can have a balance-of-payments problem, whether it consists of a geographical region that is part of a country, or one that comprises several countries, or whether it is defined in some other way, for example, as all the customers of a bank. And for a proper understanding of the balance-of-payments problem of a group, however defined, one must relate it to the balance-of-payments problem or its equivalent of the individual.