Month: October 2021

  • Sectoral Balances: (Mis?)understanding NAFA and Net Lending/Borrowing

    I’ll start with the short version here: if you’re having trouble understanding sectoral “Net Lending/Borrowing” (the stuff of sectoral balances), try renaming it: Net net accumulation of financial assets. Net accumulation of financial assets (accumulation net of disaccumulation, broken out by types of assets)– Net incurrence of liabilities (new borrowing net of loan payoffs [and…