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Societies for the History of Economics

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Subject:
Re: S = I?
From:
michael perelman <[log in to unmask]>
Reply To:
Societies for the History of Economics <[log in to unmask]>
Date:
Wed, 2 Nov 2011 17:06:38 -0700
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Isn't that a big if?  As C took a hit after 2007, did I pick up the slack?

On Wed, Nov 2, 2011 at 7:52 AM, Robert Leeson <[log in to unmask]> wrote:
> If S increases, C falls (the consumer goods sector shrinks, proportionately). But if all the new S become new capital expenditure the capital goods sector expands (initially - ignoring multiplier effects - by exactly the same $ amount as the consumer goods sector shrimks). Y therefore does not fall. The Paradox of Thrift fails.
-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com

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