Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277520 
Authors: 
Year of Publication: 
2021
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 18 [Issue:] 3 [Year:] 2021 [Pages:] 293-302
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
This contribution discusses the book Saving and Investment in the Twenty-First Century: The Great Divergence by . It touches upon the underlying theoretical perspectives, von Weizsäcker's neo-Austrian view and Krämer's short-run Keynesian theory, and it proposes an alternative based on post-Keynesian distribution and growth theory. It also reviews the economic policy proposals of the book with respect to government deficits and debt, as well as international coordination of current-account balances, and finds broad agreement with modern post-Keynesian proposals, with some deviation when it comes to macroeconomic policy coordination among monetary, fiscal and wage/incomes policies. It concludes that these economic policy agreements should not be taken as a surprise. The requirements of stabilising government deficits and debt, in the face of an excess of private saving over private investment at full employment, and an excess of the private desire to hold net financial assets over the private-sector supply of financial liabilities, are based on solid national income and financial accounting. They are thus compatible with different macroeconomic theories regarding long-run equilibrium and adjustments towards it.
Subjects: 
saving
investment
interest rate
growth
stagnation
macroeconomic policy
JEL: 
E12
E13
E14
E20
E43
E60
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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