Wednesday, 11 October 2017

Macroeconomic Paradoxes

Image credit


Eine schöne, knappe Übersicht über Paradoxien, die sich aus durchaus rationalen individuellen Handlungsweisen ergeben, deren negativen Auswirkungen aber erst auf makroökonomischer Ebene zu erkennen sind:


Diesem Artikel entnommen.

Nicely done: a concise overview of a number of pardoxes that originate in rational individual actions that reveal their negative repercussions only to him who takes a macroeconomic view:

The paradox of thrift: saving by large numbers of people impoverish the economy: people spend less, sales drop, investments are cut, total income diminishes, and hence less money is available for saving. 

The paradox of debt: if large enough numbers of people dedicate large parts of their income to the repayment of debt, total income falls, and more people become indebted.

The paradox of stability: a stable economic environment breeds optimism, which tends to increase the willingness to take risks, creating a higher debt-to-income ratio, which increases instability.

No comments:

Post a Comment