Abstract
When, in a given period, the net increase of an economic unit’s liabilities is greater than the net increase in its claims, then, in that period, the unit’s financial wealth has fallen. Net financial investment is negative in this period and the economic unit’s debtor/creditor position has risen/fallen by the amount of the net financial investment.
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© 1988 Springer-Verlag Berlin Heidelberg
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Rübel, G. (1988). External Debt and the Balance on Current Account. In: Factors Determining External Debt. Studies in Contemporary Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-83655-8_2
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DOI: https://doi.org/10.1007/978-3-642-83655-8_2
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-50504-4
Online ISBN: 978-3-642-83655-8
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