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Saving, Firms’ Self-Financing, and Fixed-Capital Formation in the Monetary Circuit

In: The Political Economy of Monetary Circuits

Author

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  • Jean-Luc Bailly

Abstract

Despite their divergences with mainstream neoclassical thought, the immense majority of Keynesians remain strongly influenced by methodological individualism. Their analyses of the formation of macroeconomic magnitudes are still marred by microeconomic presuppositions. Further, there is no denying that Keynesians often sidestep the issue of defining macroeconomic saving, and treat it somewhat hazily as the sum of sometimes voluntary sometimes involuntary individual saving. The upshot is that the relationship between saving and investment is imprecise, indeed even confused.

Suggested Citation

  • Jean-Luc Bailly, 2009. "Saving, Firms’ Self-Financing, and Fixed-Capital Formation in the Monetary Circuit," Palgrave Macmillan Books, in: Jean-François Ponsot & Sergio Rossi (ed.), The Political Economy of Monetary Circuits, chapter 5, pages 77-97, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24572-3_5
    DOI: 10.1057/9780230245723_5
    as

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