An animated GIF of the financial balances through time. OECD countries. DPB: Domestic private sector balance, GB: Government balance, FB: Foreign balance.
DPB + GB + FB = 0
DPB + GB + FB = 0
It looks to me that we can detect a cycle that reflects the business cycle. Start NE, goes SW, goes E, goes N. Start again. May be I am reading too much into it.
Better quality. made with this ezgif.com/maker
Side note, I prefer this version of the graph for two reasons:
1- It shows GB as a residual, which is one of the point of MMT: GB adapts to the needs of the system. Gov has little control over its budget.
1- It shows GB as a residual, which is one of the point of MMT: GB adapts to the needs of the system. Gov has little control over its budget.
2- It shows the F sector from perspective of that sector rather than from domestic economy's perspective. E.g. US-foreign trade is shown not by looking at the CABus but its opposite: CABf = -CABus. Always found it easier to think that way given it is done for the other 2 sectors.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
