Keynes debunks the savings fund investment ex ante argument by showing how saving is an ex post residual of investment. The mistake is erroneously imputing causality in accounting identity.
Keynes: "Saving at the prior date cannot be greater than the investment at that date. Increased investment will always be accompanied by increased saving, but it can never be preceded by it."
Fixing the Economists
Fixing the Economists
Philip Pilkington
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