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Results tagged with saving
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user 6782
2
votes
2
answers
1k
views
What is the actual paradox in the Paradox of Thrift?
paradox here is, as I believe there can be up to three potential paradoxes:
individuals increase savings when they should be spending more to get out of the initial recession
an increase in individual saving … actually ultimately decreases total savings
what benefits an individual (increased saving during a recession) actually makes the overall economy as a whole worse off. …
- 675
4
votes
1
answer
14k
views
What's the difference between the Life Cycle Hypothesis and Permanent Income Hypothesis?
Would it be correct to say that the Permanent Income Hypothesis (PIH) stipulates that current consumption decisions are made based on future income projections/expectations, while the Life Cycle Hypot …
- 675