We mentioned in the chapter that capital gains and losses on a country's net foreign assets are
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We mentioned in the chapter that capital gains and losses on a country's net foreign assets are not included in the national income measure of the current account. How would economic statisticians have to modify the national income identity (12-1) if they did wish to include such gains and losses as part of the definition of the current account? In your opinion, would this make sense? Why do you think this is not done in practice?
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Related Book For
International Economics Theory & Policy
ISBN: 9780138002121
8th Edition
Authors: Paul R Krugman, Maurice Obstfeld
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