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Im not sure how this relates to my point. Im talking about wealth, GDP, capital, and trade. These things are measured in currency, but saying a country is hord
by s1artibartfast 2y ago
Im not sure how this relates to my point.
Im talking about wealth, GDP, capital, and trade. These things are measured in currency, but saying a country is hording a currency.
If country A uses all of its surplus production beyond subsistence to import alcohol from country B, and country B invests all that money on education, infrastructure, and productive capital, you would expect different outcomes.
Country A can humm along with a perpetual trade deficit forever, but there is an opportunity cost.
- marcosdumay 2y agoThe entire thread is about currency. From the first post. If you meant to talk about wealth, real GDP, and real capital, you can... you know... reference those things on your text. Because every single thing upthread is nominal and about money changing hands. Do you want to know how Portugal can get a positive trade balance (a nominal concept)? They just need to kill tourism and the unbalanced inflow of salary and pensions. Just destroy their natural and cultural attractions and make the place so bad to live that no foreigners will want to go there. Easy. Now, we can talk about opportunity costs...
- s1artibartfast 2y agoI think you are confused by what a trade balance is. Someone coming to your country and spending money is not a trade deficit. A trade deficit is buying more goods and services from outside than are sold outside. I was trying to explain to you how a negative trade balance can be sustained, but it seems like you dont want to hear it. Take care.