Thursday, January 19, 2012

Why do we believe that S = I?


Read it at Rogue Economist Rants
Why do we believe that S = I?
by Rogue Economist

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3 comments:

Dave said...

Man, this argument is ridiculous. Each new article is even less helpful than the last. Not only can economists not agree on anything, they can't explain anything either.

January 20, 2012 2:23 AM
Dave said...

I didn't understand TC's comments on the matter either, fwiw.

January 20, 2012 2:35 AM
Neil Wilson said...

What all these arguments are missing of course is the 'I' of last resort - central bank reserves.

And as usual the problem is that the equation is being read as an time based implication, not an equality at a point in time.

So really I = S (ie I => S).

January 20, 2012 2:41 AM

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