tag:blogger.com,1999:blog-6960984241955272463.post5374462166664347174..comments2020-08-21T05:49:35.595-07:00Comments on Savings and Investment: Canadian households continue to borrow from the rest of the economy Bernhard Eichenlaubhttp://www.blogger.com/profile/09165946749562640768noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6960984241955272463.post-85354717489505782852013-02-12T17:41:40.387-08:002013-02-12T17:41:40.387-08:00D Ford. Good question. Sectoral balance are not ...D Ford. Good question. Sectoral balance are not economic models and do not explain the behavior of economic agents, including the behavior of governments and therefore fiscal policy. However, since sectoral balance always do balance, they constrain (but do not explain) possible economic outcomes, including those of fiscal policy. For example, governments can only run deficits (borrow from the rest of the economy) as long as in aggregate the rest of the economy (including the foreign sector) is saving more than it invests (which my definition result in financial asset surpluses). Bernhard Eichenlaubhttps://www.blogger.com/profile/09165946749562640768noreply@blogger.comtag:blogger.com,1999:blog-6960984241955272463.post-64367868685388092482013-02-12T11:50:06.607-08:002013-02-12T11:50:06.607-08:00What do you think this means for fiscal policy if ...What do you think this means for fiscal policy if anything?Anonymoushttps://www.blogger.com/profile/00059491674636997331noreply@blogger.com