Coalition breakup in Hungary [UPDATED] | 22 comments (22 topical, editorial, 0 hidden)

Abbreviations (none / 1)

EXPorts
IMPorts
Investment (gross for GDP, net for NDP)
Saving
Government spending
Taxes

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sun Apr 6th, 2008 at 10:24:50 AM EST
[ Parent ]

Re: Abbreviations (none / 0)

Thanks.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Apr 6th, 2008 at 02:58:52 PM EST
[ Parent ]

NB: An important Macro Assumption ... (none / 1)

... almost forgot to mention ...

"Investment" means Investment in productive capacity, not "financial investment" in terms of buying a financial asset.

Buying and selling stocks and bonds (debentures) is not treated as Investment in Macro because:

most of the transactions involve existing assets, and at the Macro level it nets out ... the purchase by the new owner is offset by the sale by the original owner, the liquid funds received by the original owner offset by the liquid funds surrendered by the new owner. It all nets out
that includes real (realized) capital gains from increasing financial capital valuations ... the realized capital gain exists because someone handed the money over to pay for it
new financial assets in the aggregate occur when new productive capacity is produced, so Macro goes straight to that and calls that "Investment".

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sun Apr 6th, 2008 at 03:23:57 PM EST
[ Parent ]

Coalition breakup in Hungary [UPDATED] | 22 comments (22 topical, 0 editorial, 0 hidden)