Why Excess Of Savings Over Investments?
Tim Duy writes:
No, that what you would expect if you have a government budget deficit of over a trillion dollars that absorbs, or crowds out if you will, private savings as well as a lot of foreign savings.
note the excess of private saving over private investment, which is exactly what you would expect if the market clearing interest rate was below the zero bound:
No, that what you would expect if you have a government budget deficit of over a trillion dollars that absorbs, or crowds out if you will, private savings as well as a lot of foreign savings.
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