The difference between ~govt budget deficit ~current account deficit~balance-of-trade deficit?

research for paper and not one of the five books I've checked out offers a clear distinction or definition.


(current and balance deficits ) appear very similiar


help|||Gov't deficit = gov't expenses minus gov't revenues.


It is totally unrealted to other two.





Trade deficit = imports minus exports of entire country





Current account deficit = trade deficit plus outgoing transfers minus incoming transfers.





Typical transfer is foreign aid, which is small, so transfers do not change the picture too much.





Current account deficit should equal net foreign investment (incoming investment minus outgoing). This is because if you import something into US, you get dollars, and you either buy something (= exporting from US), or put the money in the bank which buys US T-bonds with it (investment into US).