This paper presents a brief explanation of what a country's balance of
payments is and the main elements of the balance of
payments. The paper discusses the links between a country's balance of
payments and its rate of economic growth, as well as the links between a country's balance of payments and the exchange rate of its currency. The paper analyzes the main reasons for the United States' balance of payments
deficits over the past five years and examines the effects of these deficits upon the economy.