[The Savings Glut and the Economic Crisis]
Based 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..
|Date of creation:||25 Oct 2013|
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- Peter Temin, 1991. "Lessons from the Great Depression," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262700441, June.
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