Friedman's Zero-Saving Consumption Theory

4 Pages Posted: 25 Jun 2013

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: June 24, 2013

Abstract

This paper proves that Friedman's permanent consumption theory implies zero saving. The consequences are severe: there will be no capital accumulation, no economic growth, but there is unlimited multiplier of wastage.

Keywords: E21, O40

JEL Classification: Saving, Consumption

Suggested Citation

Choi, Hak, Friedman's Zero-Saving Consumption Theory (June 24, 2013). Available at SSRN: https://ssrn.com/abstract=2284042 or http://dx.doi.org/10.2139/ssrn.2284042

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

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Changhua City, 500
Taiwan
+886 91 901-4618 (Phone)

HOME PAGE: http://euntold.wordpress.com

Chung-Hua Institution for Economic Research ( email )

75, Changhsin St.
Taipei
Taiwan

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