[The Savings Glut and the Economic Crisis]
AbstractBased on the savings glut argument, proposed a new point of view that unlike the neoclassical and Keynesian, and on this basis, shows the current plight of the Chinese economy is heavily reliant on the root cause of the investment. Since 2008 the world financial crisis, reflections on macroeconomics and questions have been constantly. This paper argues that the economic disconnection between theory and reality is rooted in not distinguish the difference between real investment demand and monetary investment demand. There is the savings glut, from the real economy,this is the main cause for the emergence of economic difficulties.The fundamental way of China to resolve the current difficulties is not a big increase in investment, but the expansion of consumption through the reform of income distribution..
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50931.
Date of creation: 25 Oct 2013
Date of revision:
Savings glut ; Say's law ; Walrasian equilibrium; Economic cycle;
Find related papers by JEL classification:
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-09 (All new papers)
- NEP-MAC-2013-11-09 (Macroeconomics)
- NEP-TRA-2013-11-09 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Temin, 1991. "Lessons from the Great Depression," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262700441, January.
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