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What are the international economic crisis
A current account surplus can only take place in one nation if there is a current account shortage in another country. So it makes no sense to argue that a surplus is virtuous and a deficit is shameful. If a country is running a persistent current account surplus it implies that global economy is imbalanced and the country is saving too much and spending too little. Furthermore the country's excess savings are being lent to countries which are running current account deficits as a result of buying the exports of the surplus nations. This imbalance will unavoidably result in a correction which will often take the form of an international economic crisis.
Marginal Propensity to save (MPS) is the ratio of change in total saving to change in total disposable income. Symbolically, MPS = ?S/?Y For example, total
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How credit is created or the creation of credit
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