The present paper offers an opportunity to explore Keynes＇ contribution to our understanding of crisis by returning to him seminal contribution in the theory of the effective demand. The analysis contrasts this appro...The present paper offers an opportunity to explore Keynes＇ contribution to our understanding of crisis by returning to him seminal contribution in the theory of the effective demand. The analysis contrasts this approach with the neoclassical orthodoxy regarding the theory of the interest rate and the relation between saving and investment. The author poses the fundamental question： Can a policy of stimulating saving promote investment？ By using the ＂Saving Paradox＂ presented in chapter sixteen, as a framework for interpreting Bernanke＇s description of the saving glut and the current account deficit of the U.S. economy, the author offers an answer that is useful for understanding the current situation. The author also shows how moral hazard plays a significant role in the current crisis.展开更多
文摘The present paper offers an opportunity to explore Keynes＇ contribution to our understanding of crisis by returning to him seminal contribution in the theory of the effective demand. The analysis contrasts this approach with the neoclassical orthodoxy regarding the theory of the interest rate and the relation between saving and investment. The author poses the fundamental question： Can a policy of stimulating saving promote investment？ By using the ＂Saving Paradox＂ presented in chapter sixteen, as a framework for interpreting Bernanke＇s description of the saving glut and the current account deficit of the U.S. economy, the author offers an answer that is useful for understanding the current situation. The author also shows how moral hazard plays a significant role in the current crisis.
