Download This PaperRestoring the Power of Saving: The Fallacious Saving Paradox
7 Pages Posted: 16 Sep 2013
Date Written: September 15, 2013
Abstract
Keynes insisted that saving is detrimental to a nation, but he needed a positive saving function for the conclusion. Friedman has disproved such function. This paper shows that the Fisher model also rejects both Keynes' consumption and saving theories. An alternative model of consuming cakes to produce academic papers for profit is introduced. Saving is a random walk phenomenon, but it is also the driving force for economy growth. Saving, profit and income are synonyms.
Keywords: Saving, Economic Growth
JEL Classification: D91, O40
Suggested Citation: Suggested Citation
Choi, Hak, Restoring the Power of Saving: The Fallacious Saving Paradox (September 15, 2013). Available at SSRN: https://ssrn.com/abstract=2326084 or http://dx.doi.org/10.2139/ssrn.2326084
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