I’ve spent the last 3 months writing about investment and how it is funded, from a purely theoretical perspective. That might seem pretty sad (and…
Tag: identity
Over the last 2 weeks I have been exploring this central idea: If saving is not channelled to investment the value of all our savings…
Last week I introduced the central idea of this section of the blog: If saving is not channelled to investment the value of all our…
I’ve pointed out over the last 2 weeks that orthodox economists conclude from the saving-investment identity that national saving equals investment because savings are used…
In the last 3 weeks I’ve outlined the income-expenditure identity and the saving-investment identity, and described the conclusion of orthodox economics that national saving equals…
Over the last 3 weeks we’ve rattled through material that would typically be covered in the opening chapters of a macroeconomics textbook (with a number…
Last week I explained that the expenditure on what is produced in a country must always equal the income derived from that expenditure, and adding…
Last week I showed how economists calculate the value of everything produced in a national economy (Gross Domestic Product) by adding together the price of…