Investment and savings in a dynamic context

Claudio Sardoni ()

No 1/19, Working Papers from Sapienza University of Rome, DISS

Abstract: In the 1980s Asimakopulos in dealing with the problems of finance, liquidity, investment and saving, criticized both Kalecki and Keynes for the way they dealt with the problem of the investment multiplier. Kalecki's and Keynes's insufficient attention to the time dimension of the multiplier process led them to underestimate the importance of financing investment projects, especially with regard to the problem of the conversion of the firms' short-term loans into long- term loans. When this issue is taken into due consideration, it appears that the economy's propensity to save plays some role in the determination of the conditions under which firms can carry out their investment plans. The paper concentrates on the main point made by Asimakopulos. In a dy- namical analytical context which takes explicit account of the time dimension of processes, the economy's propensity to save can a ect investment, even though this does not imply the rejection of the view that investment `comes first'. A dynamic approach has the merit to emphasize the important role that the financial system plays in the process of economic expansion and it allows to look at expansionary policies and their e ects in a more articulate and thorough way.

Keywords: Investment; Saving; Multiplier; Finance. (search for similar items in EconPapers)
JEL-codes: E10 E12 E43 E44 (search for similar items in EconPapers)
Date: 2019-02
New Economics Papers: this item is included in nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.diss.uniroma1.it/sites/default/files/al ... Sardoni_wp1_2019.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.diss.uniroma1.it:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:saq:wpaper:1/19

Access Statistics for this paper

More papers in Working Papers from Sapienza University of Rome, DISS Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Montalbano ().