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For that particular example I think economists usually see savings as bad because it means that there is unproductive capital (and eventually leads to deflation
by cinquemb 8y ago
For that particular example I think economists usually see savings as bad because it means that there is unproductive capital (and eventually leads to deflation?) and therefore reduced savings means that capital that would typically be in savings would now be productive (an asset on someones balance sheet that can now be tallied for GDP instead of liability on a banks).
Well I put "stability" in quotes because in reality, every economic actor will have their own perspective of what the goal is and how effective any solution will be in achieving such goal. Some people thought zero lower bound and real negative interest rates solved things, and others thought it was just kicking the can down the road…
My issue with the first four bullet points is that the government now can point to instances where they say that they have been doing all of those things (because all these bullet points address things at such a high level), and all this is telling them to do is just do more of the same and expect different results.