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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?

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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.

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by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jan 12th, 2011 at 12:35:52 PM EST
[ Parent ]


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