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THE SAVING - CONSUMPTION DILEMMA

Mihaela Ifrim ()

Revista Economica, 2012, vol. Supplement, issue 1, 366-371

Abstract: The question standing at the base of this paper is whether an economy in recession needs more consumption or more saving. We decided to analyze the two possible answers to this question because the public opinion balance seems to incline, mainly, to the former option. We believe that saving offers resources, creates future demand and is consistent with economic growth while stimulating consumption will only boost current demand, limiting the resources and the possibility of a sustainable future growth.

Date: 2012
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