EWG - The German Recession Is About To Turn Around - No Need To Run For Gold
The purpose of this article is to review German sectoral flow balances and credit growth to ascertain the likelihood of the much talked about German economic slowdown and recession. To understand the fiscal flows, one has to look at the balance of sectoral flows within the German economy using stock flow-consistent sectoral flow analysis.
Professor Wynne Godley first comprehended the strategic importance of the accounting identity, which says that measured at current prices, the government's budget balance, less the current account balance, by definition is equal to the private sector balance.
GDP = Federal Spending