ifdp · February 29, 1984

The Foreign Sector in the U.S. Flow of Funds Accounts

John F. Wilson*

Questions arise frequently about the relation between the Foreign Sector shown in the U.S. Flow of Funds Accounts (FFA) and the U.S. Balance of Payments (BPA) statistics. Even casual inspection shows that there are sharp differences in detailed data entries, although broader figures such as the U.S. current account balance and the statistical discrepancy are much the same. This paper gives a description of the way the FFA Foreign Sector works and how it relates to the BPA statistics. It includes several illustrative tables and detailed line descriptions of the data sources currently used to assemble this sector of the accounts. The paper deals with statistical reconciliations; it does not. present research results.

On the following page is a sample of the published Foreign Sector table--which in the FFA release is on the same page as State and Local Governments. 1/ The top portion shows U.S. current account components, ending with the balance, shown with sign reversed on line 8 as the "Foreign Current Account Balance". The foreign capital account balance corresponding to this result is shown on line 9, and lines 10 and 27 show the net changes in foreign assets and liabilities, respectively, which produce the results on line 9. The difference between lines 8 and 9 is the statistical discre-

pancy, which is at line 48 in the table. None of the mentioned lines match

*/ Senior economist, Flow of Funds Section, Board of Governors of the Federal Reserve System. I wish to thank my colleagues, Judi Ziobro, Susan McIntosh

and Kip Thoresen for providing the data which made this note possible. Special appreciation goes to Steve Taylor, not only for data assistance, but also for helpful comments on several drafts of this paper, and to Dale Henderson and to Walther Lederer for additional comments. Becky Hughes kindly transformed another of my midnight inspirations into intelligible typescript and cheerfully indulged the necessary changes. This paper represents the views of the author and should not be interpreted as reflecting the views of the Board of Governors of the Federal Reserve System or other members of its staff.

1/ See Flow of Funds Accounts, Federal Reserve Board Release Z.1 (Quarterly),

STATE AND LOCAL GOVTS. AND FOREIGN

SEASONALLY ADJUSTED ANNUAL RATES

wee wm me wee ew ew wen ee ee ween ee ewe een ee ewe ew nme sewn wwe w ee ene ann wwe ene wee oe meee eno me teen weno ne cee ee eee eee eee ww ee wwe wee wecowoesores

1979

198

1981

1982

SECTOR STATEMENTS OF SAVING AND INVESTMENT

STATE ANI} LOCAL GOVTS. AND FOREIGN

SEASONALLY ADJUSTED ANNUAL RATES

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U CN 2 Be Ne e

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— oN Ww OW = 2e« « 2 e@ AOnnN Oh MR oO

w oo = .

24.8

12.8

13.5 4.6 25.9

—-— - NO Oo 1 CAH e e« © e © = & ® e enn 2 O@—- O&O £ @ WwW

—_es 8 8 @

SWe IO NHN o- N Wenn eon

~. Ww Oo we Won of uo

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5 9.8

“1 2.0 22 * x) 6 7 4 2

6. i. 4, -4, 69.

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N™ w= w e oO RN WD

9.1 4.5 8 10.9 Pe] -a1 20.5 10.4 10.1 -9.8 -4.3

-29.7 NET U.S. EXPORT RECEIPTS i 3397.3 U.S. EXPORT RECEIPTS 2 369.0 - U.S. IMPORT PAYMENTS 3 9.6 - TRANSFERS TO FOREIGN 4 18.0 - U.S. GOVT. INTEREST PAID 8 § -57.9 = U.S.CURRENT A/C NET RECEIPTS 6 + NET CORPORATE EARNINGS 11.@ RETAINED ABROAD 7 46.3 = FGN. CURRENT ACCT. BALANCE 8 (U.S. BALANCE: SIGN REVERSED)

45.4 NET FINANCIAL INVESTMENT 9 109.2 NET ALQ. OF FINANCIAL ASSETS 16 : GOLD AND SDR’S (1) il ' U.S, DEMAND DEPOSITS 12 : U.S. TIME DEPOSITS 13 73. NET INTERBANK CLAIMS 14

U.S. CORPORATE EQUITIES 15 CREDIT MARKET INSTRUMENTS 16 U.S. GOVT. SECURITIES 17 J.S. CORPORATE BONDS (2) 18

OD WSNWoONnn caAorwed on wm Ow Mh

. OPEN-MARKET PAPER i9

- SECURITY CREDIT 20 3.5 TRADE CREDIT 21 =. MISCELLANEOUS ASSETS 22 8.0 DIR. INVESTMENT IN U.S. 29 6.0 EQUITY ETC. 24 2.8 RETAINED EARNINGS 235 “8.1 OHER 26 3.9

NET INCREASE IN LIABILITIES 27 U.S. OFF. FGN. EXCHANGE

5.4 +HET IMF POSITION 28 8.5 Y.S. PRIVATE DEPOSITS 29

8 FOREIGN CORPORATE EQUITIES 3¢@ 31.8 CREDIT MARKET INSTRUMENTS 31 1.4 CORP. AND FOREIGN BONDS 92 2.9 BANK LOANS N.E.C. 3 2.1 TO FOREIGN OFFICIAL © -34 3.4 TO FOREIGN BANKS 35 -2.5 TO OTHER FOREIGN 36 23.9 OPEN-MARKET PAPER - 37 3.6 U.S. GOVERNMENT LOANS 38

- SECURITY DEBT 39 -.5 TRADE DEBT 4 17.8 MISCELLANEOUS LIABILITIES 41

8 U,S.EQUITY INIBRDs ETC. 42

- U.S. GOVT. DEPOSITS 43 8.9 U.S. DIR. INV. ABROAD(2) 44 Lal EQUITY: ETC. 45 10.8 RETAINED EARNINGS 46 8.8 OTHER 47

«9 DISCREPANCY 48

(1) U.S. NET SALES, SIGN REVERSED.

(2) CORPORATE BONDS INCLUDE NET ISSUES BYNETHERLANDSANTILLES SUBSID

AND U.S. FOREIGN DIRECT INVESTMENT IS BEFORE SUBTRACTING REFLOWS CAPITAL FROMNETHERLANDSANTILLES SUBSIDIARIES’ FOREIGN FINANCING

December 1983

(Credits

Exports of goods and services *

under US.

military

Other private services.. U.S. Government misce

uy Direct investment .

14) = Other private -sceipts......

15 -

16 Tranefer of goods and vervices under U.S. military grant programs, net.

17| Imports of poods and services .......sscsssssscsssssssssssssssssssseseecescsesssssesesnennsesereeseees

18] Merchandise, adjusted, exchiding mili s

B Direct defense exnenditures s tary

21 :

ome private payments . US. Government paymen:

services).

Private remittances and other

Special drawing

U.S. loans and other long-term ments on U.S. loans >

Equity and intercompany invested earnings

28555 S528 S2588R8 SRR © BR SSBRN RARER

U.S. claims on unaffiliated foreigners reported by

52 nonbanking concerns: 54 55 “ 56| Foreign assets in the United States, net (increase/capital inflow (+))... re Forel official assets in the United States, ne 59 US. Treas “60 Other 7 61 Other US. 62 US. liabilities 63 Other foreign 64| Other foreign assets in nthe the United States, net...

Equity and intercompany accoun 67 invested earnings of incorporated & US. peouritic BOCUTT LES ........scecccesssressecssecsneenecen

concerns:

70 ing -term 71 Short-term 2 US. liabilities 1

Long-term 13 Short-term 74| Allocations of special drawing ‘hove 75| Statistical discrepancy (sum of above items with sign reversed)

75a| Of which seasonal adjustment discrepancy.....

Memoranda:

Merchandire, adjusted, excluding mili 3 Transfers ‘sale

Fees and royalties from unaffiliated foreigner

Receipts of income on U.S. assets abroad

U.S. military grants of goods and services, net Unilateral transfers (excluding military grahts of goods and services),

BS Government grents (excluding ‘military ‘grants of goods and |

reign currency holdings

+; debits —)?

agency sales

US. Government pensions and other transfers .

transfers .........

U2. assets abroad, net (increase/cavital outflow (— »).. Usa official reserve astets, nat

Reserve pomtion wie ete International Monetary Fund. Foreign CUTTOMCIOS ..........eccescessseessesssccsnescessseeensconeesnennnes

U.S. Government aseets, other than official reserve assets, net

-term assets

accounts

of incorporated affiliates. rot BOCUTILIEB..........sceccessnesssssesersaceceseseseestenseenees

76| Balance on merchandise trade (lines 2 and 18)..

77| Balance on goods and eervices (lines 1 and 17)1* 78| Balance on goods, services, and remittances (lines

79| Balance on current account (lines 77 and 33) '!

Transactions in U.S. official reserve assets and in foreign o:

assets in the United States:

80 | less line 61).

See footnotes on page 57.

Increase (—) in U.S. official reserve assets, net (line 38)... a Increase (+) in foreign official assets in the United States (line 57

SURVEY OF CURRENT BUSINESS

Table 1-2.—-U.S. International Transactions

[Millions of dollars}

Not seasonally adjusted

348.324]

5] — 8,898

1983

83,647| 82,629

60,307| 48,315 12, 8,148/ 3,009 11,293 2,855] 8,429 2,979 803) 1,009 12,437 8,266) 3,502 6,572 581 ’

1,567 425 6,576 1,807| . 1,843 440 197 134 888 5,622] 5,354 17,565 2,786) 2,827 5,823 2,837| 2,526 57,127 12,385) 12,988 4,181 1,257] 1,282 ou 30 49 — 351,502 90,721} 94,591 64,1181 67,012 —11,918 —8,031} —3,080 - —3,777| —4,521 4,772 — 1,736} —1,440 —11,638 — 3,043} —3,284 —42 —71; —55 —295 -T1) —7 —3,700| 1,036} — 1,087 - —506| .—441 — 4,844 —1,911} —1,680 —5,008 — 1,528} —1,172 164 —389| —508 —33,769 —1,055| —7,585 — 18,229 409] 4,360] — 4,429 64 —30} -49 —8,034 — 1,823] — 2,034 —5,413 —1,187| —1,405 ~1,493) —897| —895 | = —1,128 —239; —284 | — 118,045 —622| —5,763 . 16 529 —212} —88 531 826 ~1,159| —1,175 —2'447| —2'809 1,805} 1,621 ~—17 18 521} —5,117 —983} —38,497 1,854) —971 —2,887| —2,526 ~8,222| —1,122 2 440 na.

qs y qs ) 5,166] —498

10,956) 18,487 1,973| —3,235 1 —1,055

389 508 14 3,072/34 1,103 2,628 7

16 1,570

90,790| 86,932} 80,840 54,996] 52,241| 48,844

8,262} 3,045) 3,043 »109| 2,627 151 716 750 3,136} 3,091) 3,049 1,336} 1,415) 1,839 388 394 402 1,631} 1,640) 1,676 121 112 111 5,691} 5,802} 5,477 4,480) 4,275, 3,909 1,211] 1,527) 1,568 15,620] 14,778] 12,957 1,005 989) 1,065 125 267 158 —87,554|— 91,786|— 85,030 — 60,850} 65,319} 59,698 —8,061| — 2,991) — 3,069 —3,190} — 2,955) —3,196. —1,184) — 1,132] — 1,208 —2,927| —2'986} —2:791 1 = 238 ~73 —4 -% —902| -—934) —990 —588| —641) ~—540 —1,097} —1,876] —1 —1,088} — 1,526} —1,404 —10 150 161 —9,328| —8,656| —7,555 —4,354| — 4,716| —4 7693 —125| —267; —158 —1,802| — 1,742] — 2,431 ~ 1,100} — 1,086] —1,770 —387} —384) —404 —3815) -272| —257 — 40,934} - 26,099|— 19,553 —1,489) —2,502) —934 — 2,586] —3,474| — 2,250 1,050 962| 1,222 3) 10 94 —88,313|- 22,803/— 16,670 1,163 161} 2,081 2,374] 1,688) 8,599 —1,211) —1,527} -1 —6546| —3,331| —38,527 12 _277| 12998113 2.937 qs ) qs ) qs ) —38,653|- 20,631 {- 17,511 31,612! 17,613) 11,517 1,930] 2,642; 1,661 —1,836} 4,763) 3,790 —2,004] 4,834) 4,346 258; -T71) — —160 1 sam —1,911| —1,717 50] —542 20.82 14,972} 9,855 2,636; 2,781 185] 2,942 -150; —161 14 2,095/"* 1, a6 14 2,257 1,975 —425| 1220 , 2,823 7,887} 15,082] 14,657 1] —1,190] 1,042

~6,621

—1,950 1,531

81,142] 81,853

49,506] 48,913 8,549] 3,148 2,567| 2,719

156 783 8,238] 3,236 1,499| 1,607

418 420 1,771} 1,807

146 193 4,102] 5,483 2,989) 2,613 1,113] 2,870

12,298} 12,385

1,297] 1,159

42 30 —83,168 : 89,685 — 58,316} 63,574 -3, —3,031 —8,202) —3,559 — 1,850} —1,400 —2,944| —3,001 -20} —T71 —16; —77 i, —1,086: —614) —609

— 1,880} —1,911 —1,833} — 1,523 —47) + —889 —6,819| —7,055 ~ 4,409} — 4,860 —42} -—30 —1,561| —1,823 —953} ~ 1,187 —385| —397 —223; —239 —21,699/ —658

450

—1,053] — 1,162] —1,188 —2;509| —2,447| — 2,809 1,363| 1,802| 1,608 93} 17 13 ~ 19,859 488| — 5,770 '258| — 1,016]. --4,150

1,371] 1,854] —971 ~1,113] —2'870| —3,179 —1,808| —3,222| — 1,122 18 _2.874p2 440} na.

os) | es) | as 15,985] 5,166] —498 16,452} 10,956) 18,487 49} 1,973] —3,235 2,637| 1,785| —1,055 008} 1,955| —692 ~871; —170| —363 —270} 403/148 —1,939 611] —1,870 —379| —826| —458 16,403] 8,983} 21,722 2'054| 2.230! 2,408 2,007} 1,842/ 1,900 47| "3891 "508 14 2.912114 3,072) "4 1,103 2986| 2.628} 1,867 12 2,136) 3* 184 na. 10,588} 919] 16,344 swage al 792| —1,355 7,832| —9,915 10,571 11,976 529 ~3,383°

12 SURVEY OF CURRENT BUSINESS December 1983

Table 4.1-4.2.-Foreign Transactions in the National Income and Product Accounts in Current and Constant Dollars

Billions of 1972 dollars

360.8 364. 368.8 304.5 147.3 140.7 232.6 218.5 81.4 Tl4 184.9 14.4 “4 41.8 91.7 94.2 37.0 35.5 Services 186.1 146.0 65.9 63.3 Factor 86.3 92.8 422 39.9 Other... aes 83.1 27 4 Capital grants received by the United States (net)........ 5B 0 Payments to foreigners.................... soetessvsesssessonseced 3645

330.2} 381.2 1239] 129.2 24.5) 241.0 86.2) 90.7 128.4] 127.6 6) 509 1211) 1184 206) 308 85.7 90.2 31.7 38.5 $9.8 a2 16.4 176 46.4 1 213 20.9 18 a | 11 18 63 59

- = to ~ = -~

t e

Table 4.1-4.2: 1. Equals rest-of-the-world production as shown in tables 1.5-1.6.

Table 4.3-4.4.—Merchandise Exports and Imports by Type of Product and by End-Use Category in Current and Constant Dollars

Billions of 1972 dollare

Seasonally adjusted at annual rates Seasonally [—— at. annual rates ee ee 1963 See fe fet Perse

14] 847 4| ‘149 185] 165] 161] 185] 138 ea} 27] 27] 22] m7] 69; 59{ 60/ 89] 57 ‘ 155{ 157] 187] 183] 150 336 24] 26] e322] 27] 68] 64) S89} 551 44

; 18} 13] 1 32] 26] 28} 25) 2 80] 48| 60) 48) 4 44] 40) 36] 48] 40

18/ 24) 20

20{ 18| 26] 20

196] 19.7! 903) O20} 77.0) O14

o EB xse ere gc 2 Dean ann a ~2

¥ sce se po ~ ts

11.7 70); #72] 72] Bo} tal 76] 771 17 478 181] 168! 160; 167] 161] 175] 185! 192 306 23.2 103; 8s} 88/ 82! 79] 88] 97] 106 23.2 5 78} 80/ 77) 85! s2| 90, 88] 86 118 60}; 5.1 45{ 88; 80} 36) 49; 61 96.6 182/ 189] 197] 191! 178] 185 20.8 30.6 10.7} 115] 122] 127] 108] 122 | 135] 186 98.7 173] 179] 172] 181] 17.7] 194! 197! 199 235 | 120] 121/ 118] 121] 1s] 127] 1s0] 182 18.1 53} 58{ 5&7) 60; 58! 67) 68] 67 35 22; 29] 85] 27! 30] 26] 29! 33 28 re 15 18 14 18] 13 15 16 28 Li 15 18 14 15 13 15 | 16

i79{ 171] 188! 1591 159! 168! 160

728] 643] 689| 647 54) (0.1 | 59.6 |

6} 46] 758] 72) 19) 17.7 4

duly 1983

SURVEY OF CURRENT BUSINESS

Table 4.5.—Relation of Foreign Transactions in the National Income and Product Accounts (NIPA’s) to the Corresponding Items in the Balance of

Paym

Exports of and services, BPA's Capital gains net of losses in direct investment income receipts, Statistical differences

Equals: Exports of goods ani services, NIPA's

Imports of goods and services. BPAU'S Bo eeceseceee

Lees: Payments of income on U.S. Government liabilities Capital gains net of losses in direct investment income payme! Statistical differences ¢

Plus: Gold, NIPA‘s ? Equals: Imports of goods and services, NIPA

and services, BPA’s (1-7).

Other items (5-12)... Plus: Payments of income on US. ernme! Equals: Net exports of good: and services. NIPA's (6-14).

Equals: Capital grants received by U.S.,

Unilateral transfers (exctuding military grants of goods and services), net, BPA's Leas: Statistical differences * Equals: Transfer payments

Payments of income on U.S. Government ltabilities, BPA’ Equals: Interest peid by government to foreigners, NIPA’s.

Balance on current account, BPA’s (15-25). Capital g net of icases in direct investment income, BPA’s (17). Statistical differences (18 — 26). Other items {19 —27)..........

Plus: Capital grants received by U.S., net, NIPA’s (24)

Equals: foreign investment, NIPA's (21 + 24— 28-30).

1 Includes reinvested earnings of incorporated affiliates. gold in

3 BPA capital gains and losses included in USS. direct investment income abroad (line 3) and in fore!

1978; data needed to remove them from the NIPA's in earlier years are.not availabie.

SB BRAK S8R

2 Beginni in 1960, the treatment of net exports of gold in the NIPA’s differs from e

{Millions of dollars)

Cord Answer

ARKLBRE

that in the BPA's. ‘A's (line 13) is the excess of the value of gold in domestic final sales plus the change in busin net exports of gold in the NIPA's and BPA's is identical, and is the same as the present NIPA treatment.

« Consists of statistical revisions in the BPA’s that have not yet been incorporated in the NIPA’s.

® Consists of arms shigments to Israel financed under the Emergency Security Act of 1973 and subsequent legisiation. In t which are included in the defense purchases component of GNP when they are acquired by the ® Represents interest paid by government to foreigners. This item is treated as an import o

imports.

7 Consists of a U.S. Government payment to India under the Agricultural Trade Developmen United States (net). In the 13PA’s, it is ‘included in unilateral transfers (excluding military grants of foods and services), net. * Consists of financing provided to Israel in accordance with the Emergency Security Act of 1973 and

ents Accounts (BPA’s)

500 5,062

11,076 11,076

— 466 2,901 —318

125 1,139 ~ 1,786

ess inventories over the value of

US. Government. Their transfer al f services in the BPA’'s. In the NIPA‘s,

t and Assistance Act. In the NIPA’s, this pa: subsequent legislation.

~1,624 0

150 338,771

334.596 12,512

1,676 -21 314,822

1417 ~1,410

12,512 23,949 |

1,152 0 1,152

2 of

ign direct investment income in the U.S. (line 10) are remov

ia the NIPA's. from government purchases and, thus, also from

312 330,202

—3,178 ~ 1,092 — 1,832 0

563 18,229 17,412

BPA gold exports (line 2) and imports (line 9) are removed from the NIPA’s. Imports of 'S. production of gold. Prior to 1960, the treatment of

ed from the NIPA's beginning in he NIPA's, these arms shipments are classified as military grants, broad is not reflected it is excluded

yment is included in capital grants received by the

~2-

“corresponding” lines in the Balance of Payments Accounts, as presented in the Survey of Current Business (e.g., Tables 1-2 “U.S. International Transactions", attached).

A principal reason for the difference between FFA and BPA current accounts is that the FFA version is taken directly from the National Income and Product Accounts (NIPA Table 4.1, attached) rather than from the balance of payments statistics.2/ NIPA makes certain adjustments to both exports and imports of goods and services as measured on the BPA basis. These adjustments mainly concern gold, capital gains in direct investment income and (on the imports side) payment of income on U.S. government liabilities. A reconciliation of the BPA and the NIPA is published in the annual revision tables for NIPA, usually in the July SCB as Table 4.5; the one which appeared in July 1983 also is attached for reference.

As can be seen from these materials line 8, labelled “current account" in the published FFA table, is the same as net foreign investment in the NIPA for 1982. However, in 1981 there is a difference of $1.1 billion between the FFA “current account” and NIPA net foreign investment. This is because “capital grants received by the United States"—-SDR allocations--which are recorded on the receipts side of the NIPA foreign transactions accounts, are excluded from the FFA flow statistics. The FFA figures on line 8 thus are lower than the NIPA counterpart by the amount of SDR allocations in years when these are made. This difference is offset in line 11 of the table, which also excludes SDR allocations to the U.S.,

allocations that are in BPA Table 1, line 40, so this doesn't affect the

2/ NIPA is the basis for all nonfinancial activity in the FFA.

-3-

statistical discrepancy. The difference in discrepancy is thus the net effect of all items in NIPA Table 4.5 other than SDR allocations. The

table below illustrates this reconciliation more completely.

1982 and 1981 “Current Accounts" and Discrepancies ($ Billions)

1982 1981 BPA Current Account (T.1-2, line 79) $-11.2 4.6 - NIPA Net Foreign Investment (T.4.1) / -8.3 4.0 + SDR allocations (T.1-2, line 74) $ 0 1.1 = Difference $ -2.9 1.7 FFA Foreign Sector Discrepancy (line 48) $ 38.5 25.9 - BPA Statistical Discrepancy (T.1-2, line 75) 41.4 24.2 = Difference $ -2.9 1.7

With the difference in discrepancies fully explained by the current account definitions, the table implies that net capital flows in the BPA and FFA are equal. This is in fact the case, although as the next table

illustrates, totals of “inflows” and “outflows” can be quite different.

1982 Measured Capital Flows: BPA and FFA ($ Billions)

BPA

Foreign Assets in U.S., net (T.1-2, line 56) $§ 87.9 plus: U.S. Assets Abroad, net (T.1-2, line 37) -118.0 = Net (~ = outflow from U.S.) - 30.1 FFA

Net Acquisition of Financial Assets (line 10) $ 1.5 less: Net Increase in liabilities (line 27) 31.7 = Net (- = outflow from U.S.) $ -30.2

Obviously, the arithmetic of the measured-capital-flow portion of the Flow-of-Funds Accounts reproduces the same net results as the BPA, even though the FFA versions of particular inflows and outflows differ from the

BPA arnd--as is known or at least suspected by many readers-—a variety of

-4-

non-BPA sources are used to assemble the FFA series. The objective of the remainder of this paper is to give some detail on how these line items reconcile to the BPA.

Two problems confront many readers who compare the FFA version of the capital account to the BPA version. One is that, while BPA sources are relatively well known and understood, FFA sources are not. The other is that the published FFA Foreign Sector table is much less detailed than the BPA equivalent, and also it does not show most of the underlying “arithmetic” which generates the line item results, An understanding of this background detail is important to explaining how the sector works.

I have attempted to surmount these problems by preparing a much more detailed version of the FFA Foreign Sector table than appears in the Z.1 publication. This expanded version of the table is attached for reference at the end of this note.3/ The major contrast to the published form is that the expanded table shows all of the input items to calculations in the Foreign Sector and gives a clearer picture of the order of calculation. By “inputs” in FFA is meant those data which are gathered from published or unpublished sources, and consequently are not created by the FFA arithmetic. Of the line items shown in the published version of the FFA foreign sector, only a few are inputs; most are outputs. The expanded table shows it all. In the body of the expanded table, along with specimen annual data for 1981 and 1982,4/ there are also shown the FFA codes assigned 3/ At this writing 1983 data have also been published in the FFA, but for the Foreign Sector QIV still is partly (educated) guesswork, so the 1983 annual figures are omitted.

4/ Owing to limitations in the FFA programs on the number of lines which can be put in one table, the expanded Foreign table has been split into two parts. The first follows the published version down through changes

in foreign assets. The second covers changes in foreign liabilities and the statistical discrepancy.

-5-

to each line item. These may be of little interest to most readers, but may be relevant to those who are regular users of the flow of funds statistics.

Following the expanded table are some of pages of detailed source information, keyed to the table's line numbers. Because all the inputs to the foreign sector appear somewhere in the table, and are thus associated with a source, this and the indicated arithmetic give a comprehensive descript:iion of how the sector is added together. My objective in writing down data sources has been to provide a sufficiently detailed description, in terms of publications, tables and line-references (or in terms of worksheet calculations) so that any user can track down the exact input.

Of course, data sources or data locations within existing sources sometimes change. Hopefully, the appended descriptions will be sufficient to survive a few revisions of governmental data presentation.

In this text I do not propose to discuss all the details of the Foreign Sector arithmetic. These are largely self-evident in the expanded table itself and the highlights of BPA/FFA reconciliation are given in the Summary found on page 10. However, four comments are in order here.

First, as the notes to the table show, data for the FFA Foreign Sector are gathered from a number of sources. These include the BPA themselves. They also include sources of information which go which may not appear as separate items in the SCB's BPA tables. Additionally, Federal

Reserve material and data from a few nongovernmental sources (e.g., the

-6- J

Investment Company Institute) also are used as inputs to these accounts. Probably the most important non-BPA body of information concerns the banking data on both sides of the Foreign Sector. Banking figures are exclusively derived from the Federal Reserve call reports and other banking statistics. A second comment concerns the asset/liability split in the FFA Foreign Sector. Casual inspection of the published table might suggest that changes in foreign assets and foreign liabilities are clearly separated, as they are in the BPA.5/ However, line 14 in the published table, “Net Interbank Claims,“ really is a net figure which mainly balances out due-tos and due-froms of both domestically-chartered and foreign-related banks. This fact is made clear in lines 22-29 of the expanded table, which provide

the entire decomposition. Also included under the "net interbank” rubric are deposits in foreign banks and loans by foreign branches of U.S. banks to domestic nonbanks. All this means there is some partial netting of “domestic” and "foreign" assets and liabilities on the assets side of the Foreign Sector, and this is the principal reason for the BPA/FFA differences in capital flow data shown in the second text table above. Additionally, U.S. net purchases of gold and SDRs are shown as foreign net buying, with sign reversed. This is because these assets have no counterpart liabilities. With these exceptions “domestic” and "foreign" assets are separated in the FFA, as they are in the BPA.

Third, there are certain definitional differences. In the BPA, net Eurobond issues by Netherlands Antilles affiliates of U.S. firms (the proceeds of which are loaned to the parent companies) are treated as negative direct 5/ Note that the capital flow section of the FFA Foreign Sector is written

from the “foreign perspective”. An increase in liabilities thus has a positive sign, even though it represents a capital outflow in the BPA.

-7-

investment by the U.S. parents. In the FFA these bonds are added back into foreign acquisitions of U.S. corporate bonds, and a corresponding amount is put back into the BPA version of U.S. direct investment. Also, in the BPA IBFs are treated as part of the domestic economy; in FFA IBFs are treated as foreign. More on this is found below in the section on banking data.

Fourth, on both the asset and liability sides of the Foreign Sector, BPA inputs are used in such a way that total asset and liability changes (except for the netting and shifting described above) come out the same as in the BPA. Note that under “Miscellaneous-Other” (line 49 in Part 1 of the table and line 40 in the second part), the arithmetic deriving the "Other" amount commences with BPA data on foreign private assets in the U.S. and U.S. private assets abroad, respectively. The code list subtracted from this total consists of all the input or computed private transactions which figure elsewhere in the table. This means that on both sides of the account, “Other" captures differences between BPA definitions and measurements of line items and those in the FFA presentation, as well as items not specifically measured in other lines of the table. The order of arithmetic is such that "Net Assets” (line 15 in Part 1) and “Net Liabilities” (line 1 in Part 2) are added up from all the indented detail, including "Other". So except for the interbank netting mentioned above and the different treatment of direct investment in the NIPA and BPA, the aggregated totals come out the same in the BPA and FFA presentations. At levels: of line-item detail, therefore, there may be no exact match between these alternative versions of the foreign sector, but the FFA arithmetic

restores the correspondence at the level of total assets and liabilities.

Banking Data

FFA treatment of U.S. external accounts differs from the BPA and TIC data collection in regarding international banking facilities (IBFs) as part of the "“rest-of-world". This treatment is in line with most Federal Reserve presentations of banking statistics and is analytically consistent with the principal asset/liability restrictions imposed on IBFs since their inception in December 1981. One of the problems in preparing the banking figures, therefore, is to separate data on domestic and foreign-related banks from associated data on their affiliated IBFs. In the line-notes to the expanded table the source of banking figures is given simply as “call reports”. The balance of this text will sketch the background computations on these data before they are introduced into the Net Interbank section on the assets side of the Foreign Sector and the Bank Loans n.e.c. section of the liabilities side.

Two principal characteristics of recent call reports are relevant. First, call report statistics on domestically chartered and foreign-related banks include IBFs through 1983, and IBFs are treated as foreign in FFA.6/ Hence, IBF effects must be removed. Second, individual banks report their “due tos" and “due froms” on a net basis, whereas in the FFA these figures are needed on a gross basis to be consistent with BPA.

The worksheet treatment of data on foreign-related banks is simpler than for domestically~chartered. Using available detail in the call reports, gross positions of foreign-related institutions vis-a-vis “foreign affiliates" are adjusted to remove IBF components, which appear in a separate call report form. This leaves clean data on foreign-related gross positions with

affiliates (parent banks and others) geographically located in foreign areas.

6/ Starting with March 1984, there is a domestic call-report excluding IBFs.

-9-

For domestic banks the ‘procedure is more roundabout, because the domest:ic call doesn't show gross due-tos and due-froms at all. Totalling positions of banks in net due~-to and those in net due-from status separately and netting these results gives a combined "net" figure for the whole system that, again, includes IBFs.7/

At this point data from FR. 2502 (old form FR. 502) are used to get the gross due-tos of domestically-chartered banks to foreign affiliates. The net figure described above then enables the calculation of gross duefroms. Next, IBF components are removed by subtracting IBF positions vis-a-vis foreign affiliates, as taken from the Federal Reserve IBF call reports. Finally, net claims of U.S. banks on IBFs are added to their gross due~from position. |

The effect of this calculation is to remove completely from the FFA statistics IBF transactions with affiliates in foreign countries and to shift the IBF position into a single foreign net amount due to the domestic parent. In FFA statistics, therefore, IBFs are treated as if they were foreign branches and as part of the foreign sector.

Similar treatment is applied to other banking data which appear in the Foreign Sector. Background IBF adjustments are also made for bank balances in foreign banks (lines 25 and 28 on the assets side) and for bank loans to foreign official institutions, foreign banks and to “other foreign" in lines 12-21 on the liabilities side.

7/7 As the call reports are somewhat delayed compared to the preparation of

the flow of funds statistics, TIC information is used to carry forward these net figures for the most recent period.

- 10 -

Relation of FF Foreign Sector to Balance of Payments Accounts: Summary

FF current account is taken from NIPA rather than BPA, and conceptual differences are carried through to difference in statistical discrepancies between FF and BPA.

FF capital account is statistically locked to BPA totals of outflows and inflows, but

Some items in FF are taken from U.S. domestic banking statistics rather than from TIC, and

Foreign buying of Treasury securities is taken from broader Treasury compilation than in TIC.

These FFA differences in statistical source are buried, within BPA-based control totals, in unallocated residual asset and liability categories in foreign sector.

IBFs are treated in FFA as foreign, whereas in BPA they are domestic.

Allocations of SDRs to the U.S. are excluded from FF flows both in current account and capital account.

Netherlands Antilles bond issues are treated as foreign buying of U.S. bonds rather than as negative U.S. direct investment outflows.

Other items are shifted between outflow and inflow sides, with sign changes, to result in totals of outflows and inflows that appear different from BPA, even before creation of IBFs in 1981-82 caused substantive difference in totals.

Notes to Foreign Sector Data Descriptions and Sources

The Foreign Sector is part of Table 45 in the standard Flow of Funds numbering system. It appears on pp. 12-13 of the quarterly Z.1 publication, Flow of Funds Accounts. The expanded table in this note has, for programming reasons, been split into two pieces.

Line numbers in the following descriptions refer to table lines in the two parts of the expanded Foreign Sector table.

As to main source descriptions: NIPA

National Income and Product Accounts, in the Survey of Current Business (SCB)

BPA = Balance of Payments Accounts, in SCB

FRB Federal Reserve Bulletin

Call Reports = Federal Reserve bank call reports, published irregularly in FRB

TB = Treasury Bulletin

MSPDUS = Monthly Statement of the Public Debt of the United States FRBNY = Federal Reserve Bank of New York

As to notation

Form of arithmetic in underlying FFA processing is indicated in the line item

descriptions of the expanded table. “Input™ data are not marked explicitly in

the table, but all inputs have source descriptions in the line notes.

(R) on the expanded table denotes a value determined as a residual.

(-) in the source description means a sign reversal between data-source and flow of funds storage. Data values as stored appear in the body of the

table.

APRIL 5, 1984 EXPANDED FOREIGN TABLE, PART 1

SECTOR STATEMENTS OF SAVING AND INVESTMENT FLOWS IN $MILLIONS

ew ee eee ee aes te ee oe ee we er re ee rr ee we re a ee er rs oe a

1981 1982

1 NET U.S. EXPORT RECEIPTS 266990015 16,973 9,849 2 U.S. EXPORT RECEIPTS 266902015 355,706 340,215 3 NIA EXPORTS OF G&S 266902001 368,753 347,614 4 -NET RET EARN ABROAD 266006001 9,289 7,563 5 -FGN RET EARN IN US 103192203 3,758 164 6 - U.S. IMPORT PAYMENTS 266903015 338,733 330, 366 7 NIA IMPORTS OF G&S 266903001 342,491 330, 202 8 -FGN RET EARN IN US 103192203 3,758 164 9 - TRANSFERS TO FOREIGN 266400001 6,614 7,461 10 — U.S. GOVT. INTEREST PAID 266130001 16,753 18,229 11 = U.S.CURRENT A/C NET RECEIPTS 885005015 -6, 394 -15, 841 + NET CORPORATE EARNINGS 12 RETAINED ABROAD 266006001 9,289 7,563 13 = FGN. CURRENT ACCT. BALANCE 266000105 -2,895 8,278 (U.S. BALANCE, SIGN REVERSED) 14 NET FINANCIAL INVESTMENT 265000005 -28,796 -30, 245 15 NET ACQ. OF FINANCIAL ASSETS 264090005 32,722 1,495 16 GOLD AND SDR'S (1) 263011005 -708 1,418 17 -GOLD INCLD ESF 883011203 -9 3 18 -SDRS 313011303 717. 1,421 19 U.S. DEMAND DEPOSITS 263020001 -3,785 -3,660 20 TIC DEMAND DEPOSITS 263020000 -3,785 3,660 21 U.S. TIME DEPOSITS 263035000 2,270 5,788 22 NET INTERBANK CLAIMS 764116005 -7,011 -30,121 23 DC CBS: DUE TO FGN BR 723192000 5,305 1,120 24 ~DC CBS: DUE FRM FGN BR 723092000 17,060 9,314 25 -DC CBS: BAL IN FGN BKS 723022703 3,383 10,292 26 FR CBS: DUE TO FGN AFFIL 753192000 11,126 -2,625 27 -FR CBS: DUE FM FGN AFFL 753092000 12,273 9,057 28 -FR CBS: BAL IN FGN BKS 753022703 -378 230 29 FGN BRANCH LOANS TO US 263068003 8,896 2,517 NONBANKS 30 U.S. CORPORATE EQUITIES 263064000 5,761 3,953

APRIL 5, 1984 EXPANDED FOREIGN TABLE, PART 1

SECTOR STATEMENTS OF SAVING AND INVESTMENT FLOWS IN S$MILLIONS

1981 1982

31 CREDIT MARKET INSTRUMENTS 264004005 16,009 17,571 32 U.S. GOVT. SECURITIES 263061005 7,031 7,976 33 BILLS & CIS 263061260 -2, 364 298 34 -NONMARKETABLE BILLS 263061270 141 1,178

AND CIS 35 NOTES, BONDS AND 263061330 9,536 8,856

NONMARKETABLES (R) 36 U.S. CORPORATE BONDS (2) 263063005 8,132 10,092 37 BONDS, TREASURY BASIS 263063003 5,040 1,151 38 -ISSUES SOLD ABROAD BY 263063103 -3,092 -8,941

US CORPORATIONS 39 OPEN-MARKET PAPER 263069601 846 497 40 SECURITY CREDIT 263067003 - - 41 TRADE CREDIT 263070005 3360-791 42 COMMERCIAL CLAIMS 263070003 156 -1,604 43 US GOVERNMENT LIABS 263070313 180 813 44 MISCELLANEOUS ASSETS 263090005 19,850 10,173 45 DIR. INVESTMENT IN U.S. 103192003 21,997 10,387 46 EQUITY, ETC. (R) 103192105 18,239 10,551 47 RETAINED EARNINGS 103192203 3,758 164 48 OTHER (R) 263093000 -2,147. -214 49 =FOREIGN ASSETS IN US 264090003 62,676 22,865

(FROM BPA)

50 -FOREIGN DEM DEP IN US 263020000 -3,785 -3,660 51 -TIME DEPOSITS 263035000 2,270 5,788 52 -GOVERNMENT SECURITIES 263061005 7,031 7,976 53 -CORPORATE BONDS 263063003 5,040 1,151 54 -TRADE CREDIT - GOVT 263070313 180 813 55 -US EQUITIES 263064000 5,761 3,953 56 -TRADE CREDIT - COMMER 263070003 156 -1,604 57 -SECURITY CREDIT (=0) 263067003 - - 58 -BANKERS ACCEPTANCES 263069600 846 497 59 -pDIR INVESTMENT IN US 103192003 21,997 10,387 60 -DC CBS: DUE TO FGN BR 723192000 5,305 -1,120 61 -FR CBS: DUE TOS 753192000 11,126 2,625 62 -FGN BRANCH LOANS TO 263068003 8,896 2,517

US NONBANKS

APRIL 5, 1984 EXPANDED FOREIGN TABLE, PART 2

SECTOR STATEMENTS OF SAVINGS AND INVESTMENT FLOWS IN S$MILLIONS

1981 1982

FOREIGN SECTOR

1 NET INCREASE IN LIABILITIES 264190005 61,518 31,740 U.S. OFF. FGN. EXCHANGE 2 & NET IMF POSITION 263111005 3,342 3,616 3 RES POSITION IN IMF 263111403 2,481 2,575 4 FOREIGN CURRENCIES 263111503 861 1,041 5 U.S. PRIVATE DEPOSITS 263191005 12,567 2,543 6 NONFIN BUSINESSS 103091003 490 2,370 7 MONEY MKT MUTUAL FUNDS 633091003 12,077. 4,913 8 FOREIGN CORPORATE EQUITIES 263164003 -4 1,312 9 CREDIT MARKET INSTRUMENTS 264104005 27,211 15,672 10 CORP. AND FOREIGN BONDS 263163003 5,448 6,609 ll BANK LOANS N.E.C. 263168005 3,651 -6,153 12 TO FOREIGN OFFICIAL 263168603 770 ~48 13 BY DC COML BANKS 723068263 211 861 14 BY FR COML BANKS 753068263 559 909 15 TO FOREIGN BANKS 263168701 -4, 463 725 16 BY DC COML BANKS 723068273 2,648 1,187 17 BY FR COML BANKS 753068273 -1,815 462 18 BY FEDERAL RESERVE 713068103 - - 19 TO OTHER FOREIGN 263168801 7,344 -6,830 20 BY DC COML BANKS 723068283 1,755 -2,691 21 BY FR COML BANKS 753068283 4,965 -3,494 22 -DC CBS: ACCEPTANCES 723069640 -624 645 23 OPEN-MARKET PAPER 263169175 13,883 10,709 24 DLR-PLACED FINANCIAL 263169103 3,294 2,646 COMMERCIAL PAPER 25 NONFIN COMMRCL PAPER 263169703 580 -782 26 ACCEPTANCES 263169603 10,009 8,845 27 U.S. GOVERNMENT LOANS 263169205 4,229 4,507 28 US GOVT ASSETS OTHER 264191003 5,076 5,730 THAN OFFCL RESRVES 29 -US GOVT FGN CURRENCY 313091003 -203 -51 & ST CLAIMS 30 -CAPITAL IN INTL ORGAN 313092203 1,050 1,274 31 SECURITY DEBT 263167003 - - 32 TRADE DEBT 263170003 203 -3,070

APRIL 5, 1984 EXPANDED FOREIGN TABLE, PART 2

SECTOR STATEMENTS OF SAVINGS AND INVESTMENT FLOWS IN $MILLIONS

1981 1982 33 MISCELLANEOUS LIABILITIES 263190005 18,199 11,667 34 U.S. EQUITY IN IBRD, ETC 313092203 1,050 1,274 35 U.S. GOVT. DEPOSITS 313091003 -203 -51 36 U.S. DIR. INV. ABROAD(2) 103092000 12,771 5,935 37 =DIR. INVSTMNT (BPA) 103092003 9,679 -3,006 38 -NET ISSUES SOLD ABR 263063103 -3,092 -8,941 39 EQUITY, ETC. (R) 103092105 -710 614 40 RETAINED EARNINGS 103092203 13,481 5,321 Al OTHER 263193001 4,581 4,509 42 =US PVT ASSETS ABROAD 264192003 82,346 42,346 (FROM BPA) 43 -DIR INVMT BY US PVT 103092003 9,679 ~3,006 44 -BANK LOANS NEC 263168005 3,651 -6,153 45 -TRADE CREDIT 263170003 203 -3,070 46 —CORPORATE BONDS 263163003 5,448 6,609 47 -MMMF DEPOSITS 633091003 12,077. 4,913 48 -NONFIN CORP DEPOSITS 103091003 490 -2,370 49 -EQUITIES 263164003 -4 1,312 50 “ACCEPTANCE LIABS 263169603 10,009 8,845 51 -SECURITY CREDIT (=0) 263167003 - - 52 -NONFIN COMMCL PAPER 263169703 580 -782 53 -DLR PLACED COML PAPER 263169103 3,294 2,646 54 -DC CBS: DEP IN FGN BK 723022703 3,383 10,292 55 -FR CBS: DEP IN FGN BK 753022703 -378 230 56 -DC CBS: DUE FROMS 723092000 17,060 9,314 57 -FR CBS: DUE FROMS 753092000 12,273 9,057 58 DISCREPANCY 267005005 25,901 38,523

(1) U.S. NET SALES, SIGN REVERSED.

(2) CORPORATE BONDS

INCLUDE NET ISSUES BY NETHERLANDS ANTILLES SUBSID

AND U.S. FOREIGN DIRECT INVESTMENT IS BEFORE SUBTRACTING REFLOWS CAPITAL FROM NETHERLANDS ANTILLES SUBSIDIARIES’ FOREIGN FINANCING

Line

Expanded Foreign Table~Part I

Description and Source

NIA exports of goods and services NIPA: Tables 1.1 and 4.1

Net earnings of U.S. corporations retained abroad NIPA: Table 6.25B, line 74: Undistributed profits in Table 1.11 less same in Table 1.13

Net foreign earnings retained in United States BPA: Table 1-2 "U.S. International Transactions”, line 67: "Reinvested earnings of incoporated affiliates”

NIA imports of goods and services NIPA: Tables 1.1 and 4.1

Foreign earnings retained in U.S. Same as line 5

Transfers to foreign (from persons and government ) NIPA: Table 4.1

U.S. government interest paid to foreigners NIPA: Table 4.1

U.S. earnings retained abroad Same as line 4

Gold Stock, including Exchange Stabilization Fund FRB: Table 3.12, “U.S. Reserve Assets", line 2

Special Drawing Rights FRB: Table 3.12 "U.S. Reserve Assets”, line 3, adjusted for valua-

tion changes using IMF data.

Foreign Demand Deposits in U.S. FRB: Table 3.17, “Liabilities to Foreigners Reported by Banks in the U.S., line 2 (TIC)

Foreign Time Deposits in U.S. FRB: Table 3.17, “Bank Liabilities to Foreigners”, line 4 plus line 49, less time deposits of IBFs from TIC reports

Domestically-chartered commercial banks-~due to foreign branches Bank call reports and FR. 2502 report

Domestically-chartered commercial banks~-due from foreign branches Bank call reports and FR. 2502 report

Domestically-chartered commercial banks--deposits in foreign banks Bank call reports

Line

Description and Source

Foreign-related commercial banks--due to foreign affiliates Bank call reports

Foreign-related commercial banks--due from foreign affiliates Call reports

Foreign-related commercial banks--balances in foreign banks Call reports

Short and medium term loans by foreign branches to U.S. nonbanks FR. 2950 - Foreign branch reports

Corporate equities BPA: Table 6, "Securities Transactions”, line B.2, Treasury basis (TIC)

U.S. government securities: Treasury bills and certificates of indebtedness

FRB: Table 3.17, “Liabilities to Foreigners Reported by Banks in the United States", line 8 (TIC)

U.S. Govt. Securities: nonmarketable bills and certificates of indebtedness

MSPDUS, Table III, “Detail of Public Debt Outstanding", Bills and Certificates of Indebtedness (nonmarketable: foreign series: government—dollar denominated and public-foreign currency denominated and Treasury deposit funds)

U.S.G. Notes, bonds and nonmarketables

TB, Table OFS-2, “Estimated Ownership of Public Debt Securities by Private Investors, Foreign and International” less lines 33 and 34 above and less IMF notes (= 0 since 7/74) In addition to TIC totals, this line includes Treasury deposit funds and Federal Reserve RPs with foreign official.

U.S. corporate bonds BPA: Table 6, "Securities Transactions”, line B.10, Treasury Basis (TIC)

Issues sold abroad by U.S. corporations BOP, text Table D, “Netherlands Antilles Transactions, and Intercompany Accounts (-)

line 1, Equity

Open market paper F/F. estimate

Security Credit y set=0; now consolidated with trade credit

Trade Credit: Commercial liabilities BPA: Table 7, “Nonbanking claims and liabilities", line B.11l, commercial liabilities

Line

Description and Source

U.S. Govt. liabilities except securities BPA: Table 4, “Selected U.S. Government Transactions", line C2-- "Associated with military sales contracts”

Direct Investment in U.S. BPA: Table 1-2, "U.S. International Transactions", line 65--direct investment

Retained earnings Same as line 5

Foreign assets in the U.S., net

BPA: Table 1-2, “U.S. International Transactions", line 56-~foreign assets in the U.S., less total IBF liabilities to foreigners from TIC reports

Demand deposits in the U.S. Same as line 20

Time deposits in the U.S. Same as line 21

Government securities from line 32

Corporate bonds Same as line 37

Trade credit--government Same as line 43

U.S. equities Same as line 30

Trade credit--commercial Same as line 42

Security credit Same as line 40 (= 0, includ. with trade credit)

Bankers' acceptances Same as line 39

Direct investment in U.S. Same as line 45

Domestically chartered commercial banks--due to foreign branches Same as line 23

Foreign-related commercial banks-~-due to foreign affiliates Same as line 26

Foreign branch loans Same as line 29

Line

-4-

Expanded Foreign Table-Part II

Description and Source

Reserve position in IMF

FRB: Table 3.12, "U.S. Reserve Assets, line 4,-—-Reserve position

in IMF, adjusted for valuation changes

Foreign currencies

FRB: Table 3.12, "U.S. Reserve Assets", line 5-~foreign currencies,

adjusted for valuation changes

U.S. private deposits-—-nonfinancial concerns |

BPA: Table 7, "Claims and Liabilities on Unaffiliated Foreigners Reported by U.S. Nonbanking Concerns", line A.12--deposits (-)

U.S. private deposits-—MMMFs Investment Company Institute, Eurodollar CDs of MMMFs

Foreign Equities

BPA: Table 6, “Securities Transactions”, line A.2--stocks, Treasury ~

basis (TIC) (-)

Corporate and foreign bonds BPA: Table 6, “Securities Transactions”, line A.14 bonds, Treasury

basis (TIC) (-)

Domestically~chartered commercial banks--loans to foreign official Call reports

Foreign~related commercial banks~--loans to foreign official Call reports

Domestically-chartered commercial banks--loans to foreign banks Call reports

Foreign-related commercial banks--loans to foreign banks Call reports

Federal Reserve--loans to foreign banks FRB: Table 1.18, “Federal Reserve Banks", line 5, loans to other

Domestically-chartered commercial banks--loans to other foreign Call reports

Foreign-related commercial banks--loans to other foreign Call reports

Line

Description and Source

Domestically-chartered commercial banks--holdings of foreign acceptances

Worksheet in F/F bank call book. Computed as (Total foreign acceptance liabilities - Total acceptance liabilities) x total DC bank holdings of acceptances

Dealer-placed financial paper FRBNY Commercial paper release: Commercial paper issued by financial companies, dealer-placed, foreign

Nonfinancial commercial paper FRBNY Commercial paper release: Commercial paper issued by nonfinancial companies, foreign

Acceptances FRBNY Acceptances release: acceptances for export plus goods stored in or shipped between foreign countries

U.S. Govt. Assets other than official reserves BPA: Table 1-2, "U.S. International Transactions", line 43 (-)

U.S. Govt. foreign currency holdings and short-term claims BPA: Table 1-2, "U.S. International Transactions", line 46 (-)

U.S. Govt. capital in international organizations TB: footnote to nondefense table on Agency loans, etc., on capital subscriptions to IBRD, IFC, IADB, IDB, etc.

Security Debt set = 0

Trade debt

BPA: Table 7, “Claims and Liabilities on Unaffiliated Foreigners Reported by U.S. Nonbanking Concerns”, line A.14, “commercial claims" (-)

U.S. equity in IBRD, etc. Same as line 30

U.S. government deposits BPA: Table 1-2, "U.S. International Transactions,” line 46, “U.S. foreign currency holdings and U.S. short-term assets, net” (~)

U.S. direct investment BPA: Table 1-2, "U.S. International Transactions", line 48, “Direct investment” (-)

Net issues sold abroad BPA: Text Table D--Netherlands Antilles Transactions--line 1, “Equity and Intercompany Accounts” (-)

Line

Description and Source

Retained Earnings BPA: Table 1-2, "U.S. International Transactions”, line 50, "reinvested earnings of incorporated affiliates" (-)

U.S. Private assets abroad

BPA: Table 1-2, “U.S. International Transactions”, line 47, "U.S. Private Assets, net" (-), less change in total IBF liability abroad from TIC reports

U.S. private direct investment Same as line 37

Trade credit Same as line 32

Corporate bonds Same as line 10

MMMF deposits Same as line 7

Deposits of nonfinancial concerns Same as line 6

Equities Same as line 8

Acceptances Same as line 26

Security credit Same as line 31

Nonfinancial commercial paper Same as line 25

Dealer-placed commercial paper Same as line 24

Domestically-chartered commercial banks--deposits in foreign banks Call reports

Foreign-related commercial banks: deposits in foreign banks Call reports

Domestically-chartered commercial banks--due from branches Call reports

Line Description and Source

57 Foreign-related commercial banks-~due from foreign affiliates Call reports

58 Discrepancy--foreign account residual

Cite this document

APA

Federal Reserve (1984, February 29). The Foreign Sector in the U.S. Flow of Funds Accounts. Ifdp, Federal Reserve. https://whenthefedspeaks.com/doc/ifdp_1984-239

BibTeX

@misc{wtfs_ifdp_1984_239,
  author = {Federal Reserve},
  title = {The Foreign Sector in the U.S. Flow of Funds Accounts},
  year = {1984},
  month = {Feb},
  howpublished = {Ifdp, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/ifdp_1984-239},
  note = {Retrieved via When the Fed Speaks corpus}
}