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> Notice that all four paths either raise investment or reduce savings, thereby reducing the country’s excess of savings over investment. Or...a fifth path wou
by UncleEntity 8y ago
> Notice that all four paths either raise investment or reduce savings, thereby reducing the country’s excess of savings over investment.
Or...a fifth path would be to entice people to convert "unproductive" savings into investment. If only there were some mechanism where people could tell if this was a viable route like, say, a market based interest rate.
Quite surprisingly, it turns out that "saving" and "investing" are nearly synonymous.