The close connection between trade balances and international flows of savings and investments leads to a macroeconomic analysis. This approach views trade balances—and their associated flows of financial capital—in the context of the overall levels of savings and financial investment in the economy.
The National Saving and Investment Identity
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10
- 1 -
- 2 - Understanding the Determinants of the Trade and Current Account Balance
- 3 - Domestic Saving and Investment Determine the Trade Balance
- 4 - Exploring Trade Balances One Factor at a Time
- 5 - Short-Term Movements in the Business Cycle and the Trade Balance
- 6 - Key Concepts and Summary
- 7 - Self-Check Questions
- 8 - Review Questions
- 9 - Critical Thinking Questions
- 10 - Problems
- View all as one page
1
of
10
- 1 -
- 2 - Understanding the Determinants of the Trade and Current Account Balance
- 3 - Domestic Saving and Investment Determine the Trade Balance
- 4 - Exploring Trade Balances One Factor at a Time
- 5 - Short-Term Movements in the Business Cycle and the Trade Balance
- 6 - Key Concepts and Summary
- 7 - Self-Check Questions
- 8 - Review Questions
- 9 - Critical Thinking Questions
- 10 - Problems
- View all as one page