Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I meant to demonstrate a distinction between the meaning of "savings" according to generally accepted accounting principles (GAAP) and the meaning of "savings" according to whatever economic or finance nomenclature being repeated here.

"savings = investment" is not an "accounting identity" because, according to GAAP, savings is money (or cash equivalent) not spent or otherwise disposed --even for a productive purpose such as "investment." Savings is an amount of retained income. The only "savings" recorded in a financial statement, according to GAAP, is the market value of cash. Currency is an asset type recorded on a balance sheet; the value fluctuates from reporting period to reporting period.

Value terminology employed for national income accounting purposes remotely resemble those standardized by GAAP. That annoys me.

I apologize for commenting on the subject. Again.

Diversity is the key to economic and political evolution.

by Cat on Wed Jun 9th, 2010 at 08:27:55 PM EST
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