Economics debate: Saving vs. spending

[frederick0t6]

Earlier in the week, I listened to the latest episode of EconTalk: Fazzari on Keynesian Economics. In this program, one economist argues the Keynesian perspective in macro-economics (including the interesting idea of the "paradox of thrift") and the other economist argued against it

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[worldelf]

This is not a response (maybe later), but a funny quote I thought you might enjoy, from Keynes:

"Some people seem to infer from this that output and income can be raised by increasing the quantity of money. But this is like trying to get fat by buying a larger belt. In the United States to-day your belt is plenty big enough for your belly. It is a most misleading thing to stress the quantity of money, which is only a limiting factor, rather than the volume of expenditure, which is the operative factor."