| Summary: | In spite of the extensive literature on the deficit in the US balance of payments, there is a great deal of confusion on the subject. In the present article, the authors propose to concentrate on the presentation of the facts from 1946 to 1968 in a form which will permit of a searching economic analysis. This approach brings out a better understanding of the transactions between the United States and the rest of the world. This method involves the use of several accounts and sub-accounts as well as the calculation of different types of balances. Three main types of accounts are examined separately: the current transactions account; the capital transactions account; and the account for settlements or offsetting transactions.
JEL: F31, F32, F34
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