What goes around …..

  By Mystic | October 28, 2012 - 06:38 | , ,

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 economy is transactions

The Austerity Economy


Koo
Dalio
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Written by: Mystic on October 28, 2012.
Pages: 1 2
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  • CSArichardo

    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 ? 

    • http://overthepeak.com/wordpress/ Mystic

       They are fun to do and really make you think about what is going on.

  • Willbick

    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.

    • http://overthepeak.com/wordpress/ Mystic

      Personal question to you …. Why did you not look up the answers to your own questions~?

      • Willbick

        wouldnt know where to look mate!!

        • http://overthepeak.com/wordpress/ Mystic

           Google it~!
          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.

  • Bigcollapso

    Are you going to understand what has happened after the collapse?

  • Jetser

    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!

    http://www.npr.org/blogs/money/2012/10/26/163715697/episode-413-our-fake-candidate-meets-the-people