Capital Account
a.k.a. Capital and financial account, Financial account
The part of the balance of payments that records investment and borrowing flows across a country's borders.
In plain English
The part of the balance of payments that records investment and borrowing flows across a country's borders.
The capital account (in modern statistics split into the capital account and the larger financial account) tracks money crossing borders to buy assets: factories, shares, bonds, property, loans.
A country with a current account deficit must attract this kind of money to pay its way. When foreign investors keep buying, the currency is supported; when they flee, it can tumble fast.
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