Thriftiness, Growth and the Post-Keynesian Tradition

In a series of papers, Asimakopulos argued that the post-Keynesian view of investment and savings is more complex than Keynes’s simple paradox of thrift. In some circumstances, and in particular when the economy has reached the inflation barriers, an increase in the propensity to save has favorable effects on the inducement to accumulate, as was shown by post-Keynesians such as Robinson and Kahn. It is recalled that another post-Keynesian model, that of Kaldor’s neo-Pasinetti theorem, could also lead to an orthodox interpretation of the role of thriftiness However, it is shown that when those models have been cleared of their neoclassical ingredients, Keynes’s paradox of thrift remains.