Comment on Is Keynesianism dead? Far from it – it provides the life support for a crisis-ridden capitalism by Philip Lawn
Peter: It would be X - M that would equal S - I if G equals T. In other words, the country would have to net-export for its citizens to meet its net-savings desires. This highlights a problem because X is a cost and M is a benefit (more export costs than import benefits). The domestic non-govt sector would still fail t