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I really do not udnerstand these accounting identities, regading nterest rates and solvency.

I have some idea about the accounting identities regarding debt, GDP, imports and export... but I do not get how they mix together.

I think the standard is GDP=Cons+Inv+Export-Imports but some people are including rate of increase in debt

GDP=Consumption+Investent+rate of change in debt+Exorts -Imports

Which one is right?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Wed Jan 12th, 2011 at 11:15:09 AM EST
[ Parent ]
I think it should be change in debt rather than rate of change in debt for yearly national accounting. Keen showed that unemployment closely tracked rate of change in debt.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jan 12th, 2011 at 12:35:52 PM EST
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