Economics
In economics, there are numerous accounting identities. One of the most commonly known is the balance of payments identity, where:
- Current Account + Capital Account = Change in Official Reserve Account
A common problem with the balance of payments identity is that, due to measurement error, the balance of payments may not total correctly. For example, the Economist magazine has noted that "In theory, individual countries’ current-account deficits and surpluses should cancel each other out. But because of statistical errors and omissions they never do."
Read more about this topic: Accounting Identity
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