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Do capital goods account for the huge German export lead over France? | 20 comments (20 topical, editorial, 0 hidden)
Re: This is a good start (none / 0)
No, the change in reserves comes from the addition of the current account balance (the one you've been looking at) and the capital account (or financial account) balance, i.e. the balance of investments, whether as sales/purchases of shares, bonds or investments in factories/material assets.

Germany has a large negative capital account balance because they invest a lot more outside of Germany than foreigners invest in Germany. France is the other way round, most years.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Jan 23rd, 2007 at 06:07:27 AM EST
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Re: This is a good start (none / 0)
Thanks.  I think I am starting to understand.  But I also see I have a hell of a lot to learn.

I encourage you to go shopping more.
by marco on Wed Jan 24th, 2007 at 04:21:05 AM EST
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Do capital goods account for the huge German export lead over France? | 20 comments (20 topical, 0 editorial, 0 hidden)
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