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Nick Rowe — “Profits = Investment – Saving”

Summary:
"Profits = Investment - Saving"Or, "Profits = Expenditure - Income". Those are just alternative ways of saying the same thing, for a closed economy, if investment and saving include government investment and saving. Most economists will say that's wrong. And it is wrong by standard definitions, where aggregate expenditure and income are the same thing, and investment and saving are also the same thing (for a closed economy, including government investment and saving). But let me tell you a story: Worthwhile Canadian Initiative"Profits = Investment - Saving"Nick Rowe | Associate Professor of Economics at Carleton University, Ottawa, Canada

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"Profits = Investment - Saving"

Or, "Profits = Expenditure - Income". Those are just alternative ways of saying the same thing, for a closed economy, if investment and saving include government investment and saving.
Most economists will say that's wrong. And it is wrong by standard definitions, where aggregate expenditure and income are the same thing, and investment and saving are also the same thing (for a closed economy, including government investment and saving).
But let me tell you a story:
Worthwhile Canadian Initiative
"Profits = Investment - Saving"
Nick Rowe | Associate Professor of Economics at Carleton University, Ottawa, Canada
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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