Thrift: Paradox or Virtue?

4 Pages Posted: 22 Dec 2009

Date Written: December 22, 2009

Abstract

Does increased savings result in a "paradox" or not? In this paper, a simple model highlights the assumptions sufficient to make thrift a paradox. It also shows what assumptions are necessary to make thrift a virtue.

Keywords: paradox of thrift, Keynesian model, IS-LM, macroeconomics, savings, investment

JEL Classification: E00, E12, E21, E32, E51, E62

Suggested Citation

Jacobsen, Brian, Thrift: Paradox or Virtue? (December 22, 2009). Available at SSRN: https://ssrn.com/abstract=1527111 or http://dx.doi.org/10.2139/ssrn.1527111

Brian Jacobsen (Contact Author)

Allspring Global Investments ( email )

100 Heritage Reserve
Menomonee Falls, WI 53051
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
95
Abstract Views
811
Rank
495,746
PlumX Metrics