International Transactions and Statistical Discrepancy
No current account deficit can exist without an equal inflow of foreign investment funds. Practically speaking, however, the measurement of trade and financial flows is difficult and often incomplete. Consequently, the ledger of U.S. international transactions contains a statistical-discrepancy term to ensure that the current account deficit (or surplus) is balanced against net foreign financial flows.
Suggested citation: "International Transactions and Statistical Discrepancy," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-06, pp. 09, 06.01.2001.