Write a letter to the editor of The Economist critiquing their 2017 article as referenced in Box 4 of "The Role of Saving and Investment."

1. Explain why SNA cannot be regarded as available finance for investment and, as such, should not be called saving.

2. Explain why savings imbalances between Germany and the US are not responsible for current account imbalances between these countries.

3. Refer the editor to Borio and Disyatat (2011) for a more in-depth analysis.

Question

19-11-2024
Business

High School

We appreciate your visit to Write a letter to the editor of The Economist critiquing their 2017 article as referenced in Box 4 of The Role of Saving and Investment. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Write a letter to the editor of The Economist critiquing their 2017 article as referenced in Box 4 of "The Role of Saving and Investment."

1. Explain why SNA cannot be regarded as available finance for investment and, as such, should not be called saving.

2. Explain why savings imbalances between Germany and the US are not responsible for current account imbalances between these countries.

3. Refer the editor to Borio and Disyatat (2011) for a more in-depth analysis.

Answer :

Other Questions

When you see this sign, traffic entering from the right will have

Compare surface, subsurface, and placer mining in terms of damage to the

Find the value of x. 6 9 30 21

Which of the following has been added to tractors as a safety

Read the timeline. Two timelines, both start at 775 BCE and end

Which 1998 song by Lauryn Hill combines aspects of 1950s R&B with

Select the correct answer. Which quadratic expression represents the product of these

A submarine at the water's surface dropped down 100 ft. After thirty

A dosage is prescribed as 4.00 mg of medicine per kg of

When Sharron Watkins of Enron took action to put an end to

SloanGarrett45 SloanGarrett45 · Answer 1 · 2024-07-28T01:17:02-04:00

The letter to editor regarding the disagreement with your article of 2017 titled “The Role of Saving and Investment”. In Box 4 of this article, is written.

Dear Editor,

I am writing this letter to express my disagreement with your article of 2017 titled “The Role of Saving and Investment”. In Box 4 of this article, you state that System of National Accounts (SNA) can be regarded as available finance for investment and saving, and I strongly disagree with this claim.

Firstly, SNA cannot be regarded as available finance for investment and saving because it is not a liquid financial asset. SNA refers to an accounting system that tracks the economic transactions of an economy, but it does not represent actual savings or investments. Thus, SNA should not even be called saving as it is a mere accounting identity rather than a true financial asset.

Secondly, I also disagree with your claim that savings imbalances between Germany and the US are responsible for current account imbalances between these countries. This claim ignores the fact that current account imbalances can also be caused by factors such as exchange rate movements, productivity differentials, and differences in demand for goods and services.

Therefore, focusing solely on saving imbalances overlooks other crucial factors that contribute to current account imbalances.In conclusion, I urge you to consider more in-depth analysis of these issues before making claims in your articles. I recommend that you refer to Borio and Disyatat (2011) for a better understanding of the role of savings and investments in the economy.

Sincerely,[Your Name]

Know more about the System of National Accounts

https://brainly.com/question/10642313

#SPJ11