From: Allin Cottrell (firstname.lastname@example.org)
Date: Thu May 20 2004 - 08:56:48 EDT
On Thu, 20 May 2004, Rakesh Bhandari wrote: > The profit surge also coincides with the post 2002 depreciation of > the dollar, almost 30% against the euro though only 12% against a > trade weighted basket of currencies... Yes. Another perspective on the course of profits is the Kaleckian identity: profit = investment + budget deficit + net exports - workers' saving From this point of view, comparing 2003:4 with the previous profit peak in 1997:3, we have (all in current billions of dollars): 1997:3 2003:4 change fixed private investment 1347.0 1756.0 +409.0 federal deficit 35.0 417.9 +382.9 These both boost profit, as does a fall in personal saving of 63.9. Over the same period the U.S. current account balance has fallen by 97.6, a relatively slight offset to the big boost from private investment and federal deficit spending. Allin.
This archive was generated by hypermail 2.1.5 : Fri May 21 2004 - 00:00:01 EDT