(S-I) in Sectoral Balances

by Joe Blackwell

I see a lot of confusion concerning why the private sector balance is represented by (S-I) in the sectoral balances equation. This is something that confused me for a long time when starting to learn about macroeconomics, so I thought it might be a useful resource to quickly explain what (S-I) means and why it represents the balance of the private sector. Continue reading “(S-I) in Sectoral Balances”

Cuba: Sectoral Balances, Unemployment Rate

by Serban V.C. Enache

Between 2008 and 2015, the Cuban Government ran fiscal deficits. In 2018, the Foreign sector ran a financial surplus against Cuba of almost 4% of the country’s GDP; in 2009 and 2012 the surplus was near zero, and in 2013 it reached a surplus of 1.4 of GDP. Continue reading “Cuba: Sectoral Balances, Unemployment Rate”

Peru, Sectoral Balances and Capacity Utilization

by Serban V.C. Enache

Between 2008 and 2017, the Government of Peru ran fiscal surpluses in the years 2008, 2011, 2012, and 2013 – thus helping to erode domestic private sector equity. In contrast Continue reading “Peru, Sectoral Balances and Capacity Utilization”