1 / 8

Chapter 9: Learning Objectives

Chapter 9: Learning Objectives. Flow of Funds Analysis Relative Contribution of each sector The National Balance Sheet A “bridge” to the next section of the text. Principles and Conventions of National Income Accounting.

rinah-jones
Download Presentation

Chapter 9: Learning Objectives

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 9:Learning Objectives • Flow of Funds Analysis • Relative Contribution of each sector • The National Balance Sheet • A “bridge” to the next section of the text

  2. Principles and Conventions of National Income Accounting • National Balance Sheet vs. National Flow of Funds statement concepts, and their connection • Figure 9.1 : a diagrammatic exposition • By economic sector: • Households • Businesses • Governments • Foreign sector

  3. Income Statement & Balance Sheet

  4. Basic Identities A-L=NW FA(=M+OFA)+NFA-L=NW

  5. Figure 9.2: Flows of funds in the Canadian economy major sector

  6. Figure 9.3: A diagramatic version of the flow of funds

  7. Problems with Flow of Funds Analysis • Distinction between capital vs. current spending ignored • Historical values vs. market values • Nominal vs. real values

  8. Summary • National Income accounting provides a way to summarize how financial flows are organized in the economy • The flow of funds matrix provides the actual measure of the relative financial position of different sectors in the economy

More Related