Saving and Investment: A Praxeological Approach

New Perspective on Political Economy, Vol. 3, No. 1, pp. 129-138, 2007

10 Pages Posted: 8 Jul 2011

See all articles by Walter E. Block

Walter E. Block

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

William Barnett

Loyola University New Orleans

Date Written: July 6, 2011

Abstract

Clarity in language in the sin qua non of any intellectual pursuit. If we cannot communicate accurately with one another, there is no hope of progress in scientific endeavor. Nowhere is this more true, at least in economics, than with regard to such concepts as real, as opposed to financial, saving and investment. The present paper constitutes an attempt to clarify the sometimes confusing dialogue that often ensues in this arena when sufficient care is not taken to distinguish between these very different topics. To wit, it is our hypothesis that while financial saving and investment may indeed and often do diverge from one another, the same is not at all true of real saving and real investment. In the latter case, real saving does not precede real investment; rather, it is coincident with it.

Suggested Citation

Block, Walter E. and Barnett, William, Saving and Investment: A Praxeological Approach (July 6, 2011). New Perspective on Political Economy, Vol. 3, No. 1, pp. 129-138, 2007. Available at SSRN: https://ssrn.com/abstract=1880200

Walter E. Block (Contact Author)

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
Box 15, Miller 321
New Orleans, LA 70118
United States
(504) 864-7944 (Phone)
(504) 864-7970 (Fax)

William Barnett

Loyola University New Orleans ( email )

526 Pine Street
New Orleans, LA 70118
United States

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