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 'Keynesian macrofoundations are defective' and 'Dear idiots, time to get saving and investment straight'.