Saving and investment throughout the world

Reference no: EM131133327

Retrieve the most recent World Economic Outlook (WEO) from the web site of the International Monetary Fund (www.imf.org). In the Statistical Appendix, find the table titled "Summary of Sources and Uses of World Saving," which lists saving and investment (as a percentage of GDP) around the world. Use the data for the most recent year available to answer parts (a) and (b).

a. Does world saving equal investment? (You may ignore small statistical discrepancies.) Offer some intuition for your answer.

b. How does U.S. saving compare to U.S. investment? How is the United States able to finance its investment? (We explain this explicitly in the next chapter, but your intuition should help you figure it out now.)

c. The same publication has a table entitled "Table B14. Advanced Economies: Current Account Transactions." The Advanced countries are the United States, Germany, France, Italy, Spain, Japan, the United Kingdom, and Canada. Use this table to list the countries in which GNP is larger than GDP.

Reference no: EM131133327

Questions Cloud

What has happened to the yen during the past few years : Plot the yen versus the dollar since 1971. During which times period(s) did the yen appreciate? During which period(s) did the yen depreciate?

Identify and describe three ethical mandates of jainism : Identify and describe three ethical mandates of Jainism. Then evaluate the benefits and risks of putting so much emphasis on asceticism. Make sure you use enough detail to support your answer.

Which regions of the world are borrowing and lending : Note the sum of current account balances around the world. As noted in the chapter, the sum of current account balances should equal zero. What does this sum actually equal? Why does this sum indicate some mismeasurement (i.e., if the sum were cor..

How does de pizan treat the issue of anyone starting a war : How does de Pizan (19) treat the issue of anyone starting a war? (213, para. 3++) Under what conditions may a prince undertake a war? (213, para. 3, 4; 214).

Saving and investment throughout the world : The same publication has a table entitled "Table B14. Advanced Economies: Current Account Transactions." The Advanced countries are the United States, Germany, France, Italy, Spain, Japan, the United Kingdom, and Canada. Use this table to list the..

Explain the black deaths impacts on the economic life : Explain the Black Death's impacts on the economic and cultural life of Medieval Europe. Organization should clearly present points arranged logically to support the thesis.

Real and nominal exchange rates and inflation : Suppose the real exchange rate is constant-say, at the level required for net exports (or the current account) to equal zero. In this case, if domestic inflation is higher than foreign inflation, what must happen over time to maintain a trade bala..

Explain the characteristics of effective objectives : Answer the following questions:- Explain the characteristics of effective objectives. Why are setting objectives important?- How can breakeven analysis help an entrepreneur launch a business?

What was the purpose of this symbolic gesture : In 1992, the U.S. deficit was $290 billion. During the presidential campaign, the large deficit emerged as a major issue. When President Clinton won the election, deficit reduction was the first item on the new administration's agenda.

User Account

All Pages