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Economic Policy Research Institute EPRI Working Paper Series

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Economic Policy Research Institute EPRI Working Paper Series

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However, their empirical observations can also be interpreted at hinting at a much more fundamental problem with the causality between savings and investment proclaimed by textbook theory. This thought is not new. The causation between saving and investment has long been disputed and not yet been solved. 4 Based on the works of Keynes and Schumpeter, some economists argue that the causation does not run from saving to investment, but rather from investment to saving. 5 According to them, an autonomous increase in investment can in fact create the savings necessary to finance this investment on a macroeconomic level. ...

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Nội dung Text: Economic Policy Research Institute EPRI Working Paper Series

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