SHOE Archives

Societies for the History of Economics

SHOE@YORKU.CA
Options: Use Forum View

Use Monospaced Font
Show Text Part by Default
Condense Mail Headers

Message: [<< First] [< Prev] [Next >] [Last >>]
Topic: [<< First] [< Prev] [Next >] [Last >>]
Author: [<< First] [< Prev] [Next >] [Last >>]

Print Reply
Sender:
Societies for the History of Economics <[log in to unmask]>
Date:
Thu, 3 Nov 2011 03:55:13 -0700
Reply-To:
Societies for the History of Economics <[log in to unmask]>
Subject:
Re: S = I?
MIME-Version:
1.0
Content-Transfer-Encoding:
7bit
In-Reply-To:
<[log in to unmask]>
Content-Type:
text/plain; charset=utf-8
From:
Robert Leeson <[log in to unmask]>
Parts/Attachments:
text/plain (19 lines) 
Q: As C took a hit after 2007, did I pick up the slack?

A: Under current arrangements financial intermediaries have the discretion to take S and not transform it into capital expenditure.  This discretion must be abolished.

RL 

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

ATOM RSS1 RSS2