We mentioned in the chapter that capital gains and losses on a country's net foreign assets are

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

International Economics Theory & Policy

ISBN: 9780138002121

8th Edition

Authors: Paul R Krugman, Maurice Obstfeld

Question Posted: