The conclusion that textbooks draw from the saving-investment identity is unequivocally and completely WRONG. This post explains why, drawing on the information in “Money” section of the blog, to make sure that you do not fall into making the same errors.
An explanation of the saving-investment identity, a concept that has profound implications for the economy, which will be drawn out in the rest of this section.
An explanation of why national income equals national expenditure, again as a stepping stone to the next post.
A brief explanation of how GDP is calculated, to lay a foundation for the next two posts.