keannu
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- Dec 27, 2010
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- Korean
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This is a technical question regarding economics, so you don't have to answer me if you don't have the knowledge. I'm just curious if someone knows about it. I can't understand why inadequate investment and oversaving can result in balanced supply and demand.
is52
ex)Persistent unemployment in Britain, and then the mass unemployment of the Great Depression, redirected Keynes' intellectual agenda from monetary affairs to unemployment and led to his most influential work, The General Theory of Employment, Interest and Money, published in 1936....In particular he concluded that classical economics rested on a fundamental error. It assumed, mistakenly, that the balance between supply and demand would ensure full employment. On the contraray, in Keynes' view, the economy was chronically unstable, and supply and demand could well balance out at an equilibrium that did not deliver full employment. The reasons were inadequate investment and oversaving, both rooted in the psychology of uncertainty.
is52
ex)Persistent unemployment in Britain, and then the mass unemployment of the Great Depression, redirected Keynes' intellectual agenda from monetary affairs to unemployment and led to his most influential work, The General Theory of Employment, Interest and Money, published in 1936....In particular he concluded that classical economics rested on a fundamental error. It assumed, mistakenly, that the balance between supply and demand would ensure full employment. On the contraray, in Keynes' view, the economy was chronically unstable, and supply and demand could well balance out at an equilibrium that did not deliver full employment. The reasons were inadequate investment and oversaving, both rooted in the psychology of uncertainty.