[Economic term] foreign savings

Today's economic term is foreign savings.

Just as individual economic entities raise insufficient funds from others, in the national economy, when investment exceeds savings, the insufficient funds are raised from abroad. This is called foreign savings.

Foreign savings correspond to the current account deficit, and the current account deficit is compensated by an increase in net foreign debt (foreign debt - foreign bonds).

Posted through the ECblog app (https://blog.etain.club)