Saving Equals Investment
For the best part of the last two centuries, this equality (and the ways by which it comes to be established) has been at the heart of long and protracted debates. Indeed, two of the most fruitful periods in the history of economic thought were entirely devoted to this riddle which, still today, is far from being satisfactorily solved. For all the participants in the ‘general glut controversy’ as well as for Keynes and all the leading economists of the interwar period, the saving–investment problem was the key to macroeconomic stability.
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