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I mean, that's a very corporate accounting way of looking at it. But countries are not corporations, or even banks, and the abstraction is so leaky it's pretty
by jacksnipe 1y ago
I mean, that's a very corporate accounting way of looking at it. But countries are not corporations, or even banks, and the abstraction is so leaky it's pretty much never worth using.
- lxgr 1y agoEven for corporations and individuals it works that way. If you write a check to yourself, it represents both an asset and a liability whose effects on your equity exactly cancel out.
- hosh 1y agoDouble entry accounting has properties that allow it to track the flow of money, not just its state (current balance), so it useful for countries as well as corporations.