6 Corporate saving glut and liquidity holding
Hoarding and economic crises
Today, most economists fairly agree that capitalist economic systems must grow to be healthy, and that growth depends on the relation between savings and investment decisions. But only a few economists, generally heterodox, recognise that this relation is the result of the inherent dynamic of capitalistic accumulation.
The classical economists dealt with accumulation of capital as the process through which the wealth of nations grows. But they concentrated their attention on the effects of accumulation without considering the reasons for it, because they were convinced that in capitalist economies, there was a “natural” tendency to invest ...
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