It all flows through the people.
The money people save, does not go into the economy.
The money people don’t borrow, does not go into the economy.
The Austerity Economy
Podcast: Play in new window
Love the use of diagrams ! I assume that the arrows are meant to represent “flows of money” which always exist in the economy and that the “change in the flow rates” sustained over time is an important influence on the economy. The arrows therefore operate all the time and that what changes in booms, flat and depressed economies is the “change in the rate of money flows” along these arrow paths.
I believe that was an aspect of Steve Keen’s modeling approach ?
They are fun to do and really make you think about what is going on.
Are British (and American etc) people actually saving more now than say 5 years ago? I find that hard to believe, either in % of income terms or in absolute terms. The vast majority of the British public havent got 2 beans worth of savings. Is it private companies that are saving more, i.e. not investing income.
Personal question to you …. Why did you not look up the answers to your own questions~?
wouldnt know where to look mate!!
For something like this, if you are not sure, a standard Google search will turn something up.
Mystic tip of the day – A search on Google Images is often a good short-cut.
Are you going to understand what has happened after the collapse?
Just as the time to save is when there seems no reason to save, the time to get politicians and electorates to understand the economy is when it is chugging along nicely. NPR’s Planet Money has just concluded a series in which they got some economists from across the political spectrum to create a platform for a presidential candidate.
It didn’t go well. Perhaps all he could achieve is to make the next guy with the same policies not look like such a nut. But the policies sounded fine to me!
OK, I’ll give it a go. (I gave up on `Planet Money` about a year ago).
Did you listen to the Econ Talk(ing) with Planet money – http://www.econtalk.org/archives/2012/09/frank_and_rober.html (1 hour)
This Doug Henwood chat with Adam Davidson – http://www.kpfa.org/archive/id/81331 (probably about an hour)