Thrift: Paradox or Virtue?

Brian Jacobsen

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

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Date posted: December 22, 2009  

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

Contact Information

Brian Jacobsen (Contact Author)
Wells Fargo Funds Management ( email )
MAC N9882-014
100 Heritage Reserve
Menomonee Falls, WI 53151
United States
414-359-3938 (Phone)
414-359-3535 (Fax)
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