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Showing 1 - 10 of 15 results for "Paradox of Thrift"

Chief economist update: We're not there yet

BENJAMIN ONG  |  FRIDAY, 13 NOV 2020
... restrictions... Fiscal policy can directly respond where help is most needed. "Second, fiscal policy can break paradox of thrift dynamics in the private sector when uncertainty is present... people who consider government support to be more adequately ...

Chief economist update: Cheaper prices not a bargain

BENJAMIN ONG  |  THURSDAY, 30 JUL 2020
... counterintuitive but falling prices are bad news bears for the economy, any economy. Just like John Maynard Keynes' Paradox of Thrift, savings by individuals during recessions lead to a general decline in aggregate demand and therefore, even slower ...

Chief economist update: A penny saved, a penny not earned by the economy

BENJAMIN ONG  |  FRIDAY, 6 DEC 2019
"As this prudent economy, which some people call Saving, is in private families the most certain method to increase an estate, so some imagine that, whether a country be barren or fruitful, the same method if generally pursued (which they think practicable) ...

Chief economist update: 'Paradox of Thrift' in action

BENJAMIN ONG  |  THURSDAY, 12 SEP 2019
... one sector's spending is another sector's income. This is what we call in the dismal science as the "Paradox of Thrift". A penny saved might be a penny earned. But not when everyone is saving every penny.

Lead us not into a recession

BENJAMIN ONG  |  THURSDAY, 3 SEP 2015
... it for one sector's spending is another sector's income. This is what we call in the dismal science as the "Paradox of Thrift". The government must "crowd in" private investment in consumption. The cycle goes this way: increased government demand for ...

Crowding in

BENJAMIN ONG  |  TUESDAY, 25 NOV 2014
As a student of economics, I've heard about John Maynard Keynes' 'Paradox of Thrift', David Ricardo's 'Ricardian Equivalence Theory', A Alan Greenspan's 'Interest Rate Conundrum' (which appears to be making a return performance in the US) and of course ...

When saving goes bad

BENJAMIN ONG  |  FRIDAY, 28 FEB 2014
... from 'The Fable of the Bees' -- the passage that JMK (John Maynard Keynes), himself, cited when he gave us the 'Paradox of Thrift'. Mandeville wrote 'The Fable of the Bees' in 1714 and JMK's paradox became popular among us students of the dismal science ...

Spend, spend, spend

BENJAMIN ONG  |  TUESDAY, 22 OCT 2013
... Australians' new-found predilection towards savings is not doing the economy any good. Recall John Maynard Keynes' 'Paradox of Thrift'. In simple terms, it means that if people don't spend, companies don't earn. If companies don't earn, they don't hire ...

Keynes & Riccardo on display

BENJAMIN ONG  |  WEDNESDAY, 1 AUG 2012
... and 1.4% in 2005. This explains the US economy's tepid growth and a testament to JMK (John Maynard Keynes) "Paradox of Thrift". It's also proving David Riccardo's theorem. In simple terms, the Riccardian equivalence theory posits that it does not matter ...

Wow on Wall Street

BENJAMIN ONG  |  THURSDAY, 26 APR 2012
... March. It'll be 5.0% instead, fingers crossed. Makes me think that another one of my fave JMK postulations - the Paradox of Thrift - is asserting itself into the global economy. Long gone Johnny explained how this is not good for the economy many, many ...
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