The obvious response to an excess of savings over investment is to run a corresponding budget deficit which enables the savings to be realised and supports aggregate demand. Some, such as Germany and the Netherlands are able to combine high savings with low investment through a current account surplus, but others need a budget deficit.…Triple Crisis
Structural Reforms Are Not the Answer: Expansionary Fiscal Policy Is
Philip Arestis and Malcolm Sawyer
Philip Arestis is Honorary Senior Departmental Fellow, and Director of Research at the Centre for Economics & Public Policy, Department of Land Economy, University of Cambridge; Professor of Economics at the Department of Applied Economics V, Universidad del País Vasco, Spain; Distinguished Adjunct Professor of Economics at the Department of Economics, University of Utah; Senior Scholar, Levy Economics Institute, New York; Visiting Professor, Leeds Business School, University of Leeds; and Professorial Research Associate, Department of Finance & Management Studies, School of Oriental and African Studies (SOAS), University of London.
Malcolm Sawyer is professor of economics at the university of Leeds, and a research scholar at the Levy Institute.