2008 SNA

Paradox Of Profits?, Part 2

25 March 2014

In the previous post Paradox of Profits?, I mentioned how I view the paradox of profits as the confusion between production firms’ operating surplus (as defined in the SNA such as the 2008 SNA or earlier versions) and surplus on the financial account of the system of national accounts. The paradox is highlighted by saying that at the […]


Paradox Of Profits?

22 March 2014

Post-Keynesians unnecessarily worry a lot about the paradox of profits. This post is on my thoughts on the paradox. In my view, there is no paradox at all. It is simply the case of not looking at all the parts of the system of national accounts/flow of funds. Although Post-Keynesians use Kalecki’s profit equation in […]


Description Of Cryptocurrencies Using SNA

28 December 2013

In India – at least a while ago – they were many tickers trading on the stock exchanges with no income and in some cases with no office whatsoever! Why would anyone incorporate such a thing? For two – illegal – reasons: first the IPO of the company gets the money in – which makes […]


Strange Claims About KfW

4 December 2013

Earlier, I had two posts on this but now these have been merged into one.  Chartalists again! This blog post The fiscal role of the KfW – Part 1 by Bill Mitchell of Australia makes the most exorbitant claims about an institution called KfW and the government of Germany. Bill Mitchell claims: It is a major […]


Balance Of Payments Crises

31 August 2013

Phil Pilkington takes an issue with Sergio Cesaratto on the usage of the phrase “balance-of-payments crisis” on problems of the Euro Area. Phil’s argument is that typically nations facing balance of payments problems need foreign currency and it manifests itself as a depreciation of the domestic currency but in the Euro Area this isn’t the […]


United States To Adopt The 2008 SNA

22 April 2013

There are two interesting articles in the Financial Times today: Data shift to lift US economy 3% and US economy gets a Hollywood makeover According to the first article, The revision, equivalent to adding a country as big as Belgium to the estimated size of the world economy, will make the US one of the first adopters […]


Random Tidbits On National Accounts And Keynesian Models Of Income And Expenditure

13 December 2012

I came across this article (via a Tweet from Stephen Kinsella): Accounting As The Master Metaphor Of Economics by Arjo Klamer and Donald McCloskey which discusses how the framework of national accounts has been pushed to the background in economic analysis over the years. It is a nice read – although boring in a few places. I […]


A Quiz On National Accounts: Answers

15 July 2012

In my previous post, I had the following questions: Can government expenditure be greater than 100% of gdp? Can Gross Fixed Capital Formation of an economy as a whole be negative? The answer to both is yes. Commenters guessed the right answer and provided the example I was looking for (except the fourth below). Here […]


A Quiz On National Accounts

12 July 2012

In the following video, CNBC irritates Paul Krugman to argue against government spending which provoked Krugman to write a blog post Zombies On CNBC Krugman is asked – how high can government expenditure go – 100%? Okay two theoretical questions which are purely theoretical – nothing much to do with the discussion above. Can government […]


Balance Of Payments: Part 2 – Double Versus Quadruple Entry Bookkeeping

20 May 2012

Some time back I had started with the first part of a series of posts on this topic: see Balance Of Payments: Part 1. From the same post, here’s from the Australian Bureau of Statistics’ manual Balance of Payments and International Investment Position, Australia, Concepts, Sources and Methods, 1998 (click to enlarge) So we have the current account, the […]