Eartha
Member
- Joined
- Oct 8, 2009
- Member Type
- Student or Learner
- Native Language
- Chinese
- Home Country
- China
- Current Location
- China
Dear all,
How should I understand the underlined?
what does "their own behavior" refer to?
Thanks in advance.
Eartha
Governments would like companies to start spending their cash piles. But as James Montier of GMO, a fund-management group, points out, that depends on their own behavior. In terms of national accounts, massive government deficit are a counterpart to the surge in corporate profits. The surpluses and deficits of the various sectors of the economy must balance, so a huge surplus in one sector must be balanced by deficit elsewhere. Governments spend money on goods and services or borrow money to finance social benefits, which are then also spent on goods and services from the corporate sector.
How should I understand the underlined?
what does "their own behavior" refer to?
Thanks in advance.
Eartha
Governments would like companies to start spending their cash piles. But as James Montier of GMO, a fund-management group, points out, that depends on their own behavior. In terms of national accounts, massive government deficit are a counterpart to the surge in corporate profits. The surpluses and deficits of the various sectors of the economy must balance, so a huge surplus in one sector must be balanced by deficit elsewhere. Governments spend money on goods and services or borrow money to finance social benefits, which are then also spent on goods and services from the corporate sector.