Thrift: Paradox or Virtue?
Wells Fargo Funds Management
December 22, 2009
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.
Number of Pages in PDF File: 4
Keywords: paradox of thrift, Keynesian model, IS-LM, macroeconomics, savings, investment
JEL Classification: E00, E12, E21, E32, E51, E62
Date posted: December 22, 2009