Paradox Of Thrift-an Analysis Based On Hoarding
Dr. Abhrajit Sinha
Macroeconomics deals with the household and the firm through the automatic mechanism of aggregate demand and aggregate supply until and unless demand deadlock or supply side rigidities affect. In these cases of demand deadlocks and supply side rigidities, intervention seems to be a general solution. However, that does not mean that it is a complete failure of the automatic mechanism., because, even in these demand deadlock and supply side rigidity situations, the automatic mechanism may revive through the asset market operations. Hoarding plays a pivotal role in determining the direction of expansion of aggregate demand.
Keywords- Hoarding, Full-employment, Keynes Effect, Pigou Effect, Liquidity Trap.
Cite this Article
Dr. Abhrajit Sinha,   "Paradox Of Thrift-an Analysis Based On Hoarding"
, International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.8, Issue 1, pp.507-509, March 2020, Available at :http://www.ijedr.org/papers/IJEDR2001097.pdf