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The Saving - Consumption Dilemma

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  • IFRIM Mihaela

Abstract

The question standing at the base of this paper is whether an economy in recession needs more consumption or more saving. We decided to analyze the two possible answers to this question because the public opinion balance seems to incline, mainly, to the former option. We believe that saving offers resources, creates future demand and is consistent with economic growth while stimulating consumption will only boost current demand, limiting the resources and the possibility of a sustainable future growth.

Suggested Citation

  • IFRIM Mihaela, 2012. "The Saving - Consumption Dilemma," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(1), pages 366-371.
    • Handle: RePEc:blg:reveco:v:supplement:y:2012:i:1:p:366-371
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/Volume1-2012.pdf
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