Financial Markets

Surplus Unit + on Country level

= unit that has a positive NAFA -> financial surplus 
 
s - i > 0 -> NAFA > 0 -> surplus unit
 
Interest of lenders:
  • max. return
  • min. risk
  • liquidity 
 
Country level:
- Countries with financial surpluses: positive trade balance NX > 0; because income Y is higher than internal demand (C+I+G)
 
Y = C + I + G + NX -> NX = Y - C - I - G

Diskussion