October 9, 2016

Note on saving and investment

Comment on Steve Roth on 'Note To Economists: Saving Doesn’t Create Savings'


Like most economists, Steve Roth has some serious troubles with elementary logic and the mathematics of accounting. The saving-investment blunder is as old as Adam Smith and has NOT been rectified since then, neither by Orthodoxy nor by traditional Heterodoxy.

The most elementary relationship says monetary saving = monetary loss and monetary dissaving = monetary profit. For details see ‘The tiny little problem with economics’ and for more details see cross-references Refutation of I=S

Egmont Kakarot-Handtke

Related 'How Keynes got macro wrong and Allais got it right' and 'A new episode of one of the worst blunders of economics' and 'Macrofoundations, too, are defective'