U.K. Experience 1962–72: Spending, Profits and Liquidity
What follows is concerned with analysing the evidence available on the overall position of the company and personal sectors as things have developed over the last ten years, and more particularly since 1965. The basic information has been arranged in the form of half-a-dozen tables. What appears to emerge is that personal spending and saving have continued at a reasonable and uninterrupted level, modestly increasing in real terms, but that in addition the liquidity position has been further reinforced by switches of assets. In contrast, the liquidity of the company sector has been very seriously reduced, possibly to the extent of damaging its capacity for expansion should effective demand be allowed to increase.
KeywordsDisposable Income Real Term Liquid Asset Building Society Effective Demand
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