Sentences with phrase «by a capital surplus»

Not exact matches

For much of the nineteenth century, the United States also ran trade deficits and capital account surpluses, but while there were already capital flows driven by investors making independent decisions about where to park their money, roughly 90 percent of the international business done by London banks consisted of trade finance.

As foreign central banks buy CGBs, the PBoC does not intervene and the RMB rises enough that the rise in foreign purchases of CGBs is matched by the combination of a decline in China's current account surplus and an increase in China's capital account deficit.

U.S. investment exceeds U.S. savings, and the United States runs a trade deficit that is by definition equal to the gap between investment and savings.1 It also runs a capital account surplus equal to the gap because this is the amount of net foreign capital inflow that bridges the gap, and the trade account and the capital account for any country must always balance to zero.

Any country's capital account of course is simply the gap between its domestic savings and its domestic investment, and because the capital account must balance the current account (the two always add to zero), to say that the gap between savings and investment in any country must be equal to an opposite gap between savings and investment abroad is simply to restate the far more intuitively familiar claim that every current account surplus in the world must be matched by a current account deficit.

The total money that ants receive from their trade (current account) surplus is perfectly balanced by the capital account deficit, which is simply the amount of savings they send abroad.

Of course a net exporter of capital is by definition a country that is running a current account surplus.

In a world of capital scarcity and high investment demand, membership in a trading regime built around large trade and current account surpluses is rewarded by access to equally large capital exports.

If China runs a capital account deficit and the US a capital account surplus, and these are roughly equal to net purchases by the PBoC and other Chinese government entities of US government bonds and US assets, China will run a current account surplus exactly equal to its capital account deficit.

The United States during this period ran large trade surpluses and capital account deficits as it exported its excess savings to fund its net exports while the growth of its trading partners was constrained by their urgent investment needs.

A compelling answer, offered in this long essay by Michael Pettis or this distillation by Matthew Klein, involves the other side of the trade deficit, i.e., the capital account surplus.

If all other things remain unchanged, Gregory, this would mean that the US capital account surplus would be higher over the five year period by $ 350 billion.

Since then, China has experienced net capital account outflows, and as these exceeded the current account surplus from mid-2014 until very early 2017, we saw reserves drop by roughly one quarter from their peak.

Because capital exports are just the obverse of a current account surplus, this meant that after spending much of the 1990s in deficit, Germany's excess production, caused not by a surge in production but rather a decline in consumption, was resolved by the country's running a current account surplus.

Since the current account balance is almost wholly driven by the trade balance, limiting the capital account surplus must limit the trade deficit.

Because the current account ran a $ 22 billion surplus, the sum of the capital account and the central bank account had to run a $ 22 billon deficit, and given that the former was in $ 30 billion surplus, the later must have run a $ 52 billion deficit, that is, central bank reserves rose by $ 52 billion.

They quickly pointed out that Europe is too large simply to assume that the world can absorb large changes in its capital and trade accounts, and as they debated about the ways global constraints would affect the assumptions about European surpluses most of them quickly decided that either the markets would not permit surpluses of this size, perhaps by bidding up the euro, or the impact of these surpluses would be very negative for the world.

To return to our example, we want to understand what will happen if China runs a $ 22 billion trade surplus and exports the full amount to the United States, which causes the U.S. capital account surplus and the US current account deficit both to rise by $ 19 billion.

If an increase in foreign investment causes the U.S. capital account surplus to grow, the U.S. current account deficit must also grow by exactly the same amount.

The government, it said, remained on course for a # 10 billion surplus in 2019 - 20, but only by delaying capital investment, promising further cuts in spending on public services, and bringing forward a one - off boost to corporation tax receipts into 2019 - 20.

These policies allowed the dominant world capital to directly and indirectly through its Russian commercial and financial intermediaries develop a strategy of pillaging the countries» industry (through the massive transfer of surpluses generated by the industry to the intermediaries and to foreign capital).

Moving foreign capital surpluses were attracted by the high economic growth in these regions and by investing did not contribute to increased growth but rather to inflation in real - estate value and investment.

But Bruce is believed to still be hopeful of managing to persuade the lanky forward to swap the Emirates for the KC this summer after Bendtner was told by Gunners manager Arsene Wenger that he would be surplus to requirements in north London next season following 45 goals in 157 appearances for the club in the past eight years in the capital.

@JoeJobs No, my point was that I know of no writing by Marx which would suggest that the proletariat can just buy the means of production from the bourgeoisie; that idea doesn't really fit into Marx's analysis of the capitalist system (which suggests that capital accumulates and extracts surplus value from the proletariat; they don't have the means to purchase the means of production, which is why they are the proletariat; those that do have those means, but can't participate in capitalist exploitation would be the petite bourgeoisie, but they are in no way seen as a step towards communism).

By an accounting identity, trade surplus is necessarily equal to net capital outflow.

His commitment to run a surplus on capital and current spending in the next parliament was challenged by Labour, who said Osborne had failed to meet his two fiscal targets in this parliament.

The Conservatives intend to go further by maintaining consolidation for a year longer (through to 2018 - 19) in order to deliver an overall budget surplus on both current and capital accounts.

Legislators are currently considering four other CTU - supported bills that directly impact conditions in public schools: HB 5481, requiring school districts to report class size data to ISBE and sets targets for K - 12 class sizes beginning in 2020; HB5721, which mandates improved public input and transparency in CPS capital spending and provides supports for schools and students hit with school actions like closings and turnarounds; HB 3786, which requires fully empowered local school councils in publicly funded schools, including charters, that must vote by a super-majority to approve school closures and reorganizations; and HB 4800, which would move surplus TIF funds to public education needs.

(hh) If the unencumbered amount of cumulative surplus revenue from tuition held by a charter school at the end of a fiscal year, less (i) the amount of the fourth quarter tuition payment, (ii) the amount held in reserve for the purchase or renovation of an academic facility pursuant to a capital plan, and (iii) any reserve funds held as security for bank loans, exceeds 20 per cent of its operating budget and its budgeted capital costs for the succeeding fiscal year as is reported in a capital plan to be submitted in the school's most recent annual report, the amount in excess of said 20 per cent shall be returned by the charter school to the sending district or districts and the state in proportion to their share of tuition paid during the fiscal year.

To provide capital appreciation and regular income for unitholders by identifying profitable arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market instruments.

The books have to balance — our current account deficit must be balanced by a capital account surplus; the question is at what level of the dollar do they start buying US goods and services, rather than bonds?

All insurance companies doing business in the United States are regulated by state law, and required to maintain enough capital and surplus to satisfy their obligations to their policy holders.

The type and quantity of investments in which insurance companies may invest surplus capital is also limited by state law.http: / / www.onlyinsurance.com /

TechFinancials further explains: «The Buyer will pay to the Company any surplus net working capital in BOT as at the closing date along with the loan amount owed by BOT to the Company which, as of the date of this announcement, was approximately US$ 200,000.

Solvency Margin Protection — By purchasing what is known as surplus relief insurance (a type of reinsurance policy) an insurer may be able to continue accepting additional clients without the need for raising capital (for example through share issues — and diluting holdings for existing shareholders)

The company's capital and surplus are measured by the difference between its assets and its liabilities.