To Save or to Consume: Linking Growth Theory with the Keynesian Model

Autor/in	Kwok, Yun-kwong
Titel	To Save or to Consume: Linking Growth Theory with the Keynesian Model
Quelle	In: Journal of Economic Education, 38 (2007) 1, S.109-123 (15 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
Schlagwörter	Financial Policy; Economics Education; Undergraduate Study; Theories; Models; Economic Progress; Macroeconomics; Money Management + Suchen Sie Ihr Suchwort? Fiscal policy; Finanzpolitik; Wirtschaftskunde; Grundstudium; Theory; Theorie; Analogiemodell; Economic growth; Wirtschaftswachstum; Makroökonomie
Abstract	In the neoclassical growth theory, higher saving rate gives rise to higher output per capita. However, in the Keynesian model, higher saving rate causes lower consumption, which may lead to a recession. Students may ask, "Should we save or should we consume?" In most of the macroeconomics textbooks, economic growth and Keynesian economics are in separate, sometimes unsequential, chapters. The connection between the short run and the long run is not apparent. The author builds a bridge between the neoclassical growth theory and the Keynesian model. He links the Solow diagram and the IS-LM curves and depicts the short-run to long-run transition of the economy after changes in saving and other macroeconomic policies. (Contains 4 figures and 9 endnotes.) (Author).
Anmerkungen	Heldref Publications. 1319 Eighteenth Street NW, Washington, DC 20036-1802. Tel: 800-365-9753; Tel: 202-296-6267; Fax: 202-293-6130; e-mail: subscribe@heldref.org; Web site: http://www.heldref.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10