John Maynard Keynes · Economics

The Paradox of Thrift

Keynes’s unsettling discovery that saving - the great private virtue - can become a public vice, and that one person’s spending is another’s job.

What you'll be able to recall

You learned that saving can backfire in aggregate and that spending multiplies. Explain the paradox of thrift and how the multiplier works, in your own words.

Leads to Hyman Minsky.

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