Better than QE ? (All GOVs do it)

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#9
(30-12-2013, 04:50 PM)specuvestor Wrote: ^^^ This is actually called the Paradox of Thrift. When velocity of money increases, wealth and prosperity increase.

If I'm not wrong, what's been described isn't the Paradox of Thrift at all.

From Wiki:

The paradox of thrift (or paradox of saving) is a paradox of economics, popularized by John Maynard Keynes, though it had been stated as early as 1714 in The Fable of the Bees,[1] and similar sentiments date to antiquity.[2][3] The paradox states that if everyone tries to save more money during times of economic recession, then aggregate demand will fall and will in turn lower total savings in the population because of the decrease in consumption and economic growth. The paradox is, narrowly speaking, that total savings may fall even when individual savings attempt to rise, and, broadly speaking, that increase in savings may be harmful to an economy.
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RE: Better than QE ? (All GOVs do it) - by kazukirai - 30-12-2013, 09:43 PM

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