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The Paradox of Thrift

If this link does not work, your instructor can provide a pdf. file with this article.

1)      “Wait, Is Saving Good or Bad? The Paradox of Thrift” by E. Katarina Vermann

http://research.stlouisfed.org/pageone-economics/pages/newsletter.php?nid=64

2)      The paradox of thrift — for real

http://krugman.blogs.nytimes.com/2009/07/07/the-paradox-of-thrift-for-real/?_r=0

3)      Interest Rates, Aggregate Demand, and the Paradox of Thrift

http://muddywatermacro.wustl.edu/interest-rates-aggregate-demand-paradox-of-thrift

 

In your initial response to the topic you have to answer all 3 questions.

You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.

 

1. What is the paradox of thrift? Is Saving Good or Bad?Is it real?

2. Give an example of the paradox pf thrift..

3. What is the reverse paradox of thrift?         

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Category: Sample Questions