Saving and Investment in the Twenty-First Century

The economy of the 21st century in the OECD countries and in China, is characterized by a new phenomenon: the structural surplus of private savings in relation to private investment. This is true even in a situation of prosperity and very low interest rates. On the one hand, this excess saving is du...

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Principais autores: von Weizsäcker, Carl Christian, Krämer, Hagen M.
Formato: Online
Idioma:inglês
Publicado em: Springer Nature 2021
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Acesso em linha:ONIX_20210714_9783030750312_24
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author von Weizsäcker, Carl Christian
Krämer, Hagen M.
author_browse Krämer, Hagen M.
von Weizsäcker, Carl Christian
author_facet von Weizsäcker, Carl Christian
Krämer, Hagen M.
author_sort von Weizsäcker, Carl Christian
collection Directory of Open Access Books
description The economy of the 21st century in the OECD countries and in China, is characterized by a new phenomenon: the structural surplus of private savings in relation to private investment. This is true even in a situation of prosperity and very low interest rates. On the one hand, this excess saving is due to people's increasing inclination to save in light of rising life expectancy, driven by the desire to have sufficient assets in old age. On the other hand, the demand for capital is not increasing to the same extent, so that investment is not keeping pace with the rising desire to save. The resulting gap between the private desire for wealth and private investment can only be closed by increasing public debt. This open access book offers a new, capital-theoretical perspective on the macroeconomic relationship between desired wealth and investment, and it presents new empirical data on private wealth and its composition in the OECD plus China area. The authors argue that a free economic and social order can only be stabilized if the wealth aspirations of individuals are met under conditions of price stability. This is not possible without substantial net public debt. A new way of thinking about the economy as a whole is required. By way of an in-depth theoretical and empirical analysis, the book demonstrates this new way of thinking and describes the current challenges facing economic policy. It will appeal to economists and students of economics who are interested in macroeconomic theory and its economic policy implications. An impressive, and convincing theoretical dive into the fundamentals behind secular stagnation, with very strong implications for actual debt policy. Public debt may be needed to improve welfare. - Olivier Blanchard, Senior Fellow at the Peterson Institute for International Economics and Professor of Economics Emeritus at Massachusetts Institute of Technology (MIT). Chief Economist at the International Monetary Fund from 2008 to 2015. Saving and Investment in the Twenty-First Century gives a wholly new perspective on macroeconomics. (...) Weiz­säcker and Krämer describe a simple, practical solution to the underemployment that has plagued Southern Europe for more than a decade. - George Akerlof, Nobel Laureate in Economics, 2001. Professor at the McCourt School of Public Policy at Georgetown University and Professor of Economics Emeritus at the University of California, Berkeley. This is a profound and original contribution that can help us to understand and act on the great issues of our times. - Nicholas Stern, Grantham Research Institute on Climate Change and the Environment at the London School of Economics. Author of the Stern Review Report on the Economics of Climate Change. Chief Economist at the World Bank from 2000 to 2003.
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spelling doab-20.500.12854ir-712882025-08-13T14:12:29Z Saving and Investment in the Twenty-First Century von Weizsäcker, Carl Christian Krämer, Hagen M. Macroeconomics/Monetary Economics//Financial Economics Economic Policy Public Finance International Economics History of Economic Thought/Methodology Macroeconomics and Monetary Economics History of Economic Thought and Methodology Capital supply, capital demand Public debt Demography Neo-Austrian capital theory Keynesian economics Private savings Private investment Interest rates Macroeconomics Open Access Monetary economics Political economy Public finance & taxation Economic history thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history The economy of the 21st century in the OECD countries and in China, is characterized by a new phenomenon: the structural surplus of private savings in relation to private investment. This is true even in a situation of prosperity and very low interest rates. On the one hand, this excess saving is due to people's increasing inclination to save in light of rising life expectancy, driven by the desire to have sufficient assets in old age. On the other hand, the demand for capital is not increasing to the same extent, so that investment is not keeping pace with the rising desire to save. The resulting gap between the private desire for wealth and private investment can only be closed by increasing public debt. This open access book offers a new, capital-theoretical perspective on the macroeconomic relationship between desired wealth and investment, and it presents new empirical data on private wealth and its composition in the OECD plus China area. The authors argue that a free economic and social order can only be stabilized if the wealth aspirations of individuals are met under conditions of price stability. This is not possible without substantial net public debt. A new way of thinking about the economy as a whole is required. By way of an in-depth theoretical and empirical analysis, the book demonstrates this new way of thinking and describes the current challenges facing economic policy. It will appeal to economists and students of economics who are interested in macroeconomic theory and its economic policy implications. An impressive, and convincing theoretical dive into the fundamentals behind secular stagnation, with very strong implications for actual debt policy. Public debt may be needed to improve welfare. - Olivier Blanchard, Senior Fellow at the Peterson Institute for International Economics and Professor of Economics Emeritus at Massachusetts Institute of Technology (MIT). Chief Economist at the International Monetary Fund from 2008 to 2015. Saving and Investment in the Twenty-First Century gives a wholly new perspective on macroeconomics. (...) Weiz­säcker and Krämer describe a simple, practical solution to the underemployment that has plagued Southern Europe for more than a decade. - George Akerlof, Nobel Laureate in Economics, 2001. Professor at the McCourt School of Public Policy at Georgetown University and Professor of Economics Emeritus at the University of California, Berkeley. This is a profound and original contribution that can help us to understand and act on the great issues of our times. - Nicholas Stern, Grantham Research Institute on Climate Change and the Environment at the London School of Economics. Author of the Stern Review Report on the Economics of Climate Change. Chief Economist at the World Bank from 2000 to 2003. 2021-02-10T12:58:18Z 2021-07-14T09:58:48Z 2021 book ONIX_20210714_9783030750312_24 OCN: 1258675585 https://library.oapen.org/handle/20.500.12657/50046 9783030750312 https://directory.doabooks.org/handle/20.500.12854/71288 eng open access image/png image/jpeg image/jpeg image/jpeg n/a n/a n/a n/a https://library.oapen.org/bitstream/20.500.12657/50046/1/978-3-030-75031-2.pdf https://library.oapen.org/bitstream/20.500.12657/50046/1/978-3-030-75031-2.pdf https://library.oapen.org/bitstream/20.500.12657/50046/1/978-3-030-75031-2.pdf https://library.oapen.org/bitstream/20.500.12657/50046/1/978-3-030-75031-2.pdf Springer Nature Springer International Publishing 10.1007/978-3-030-75031-2 10.1007/978-3-030-75031-2 9fa3421d-f917-4153-b9ab-fc337c396b5a 78aff590-bd97-471d-979d-9e55c0bdcdfc 9783030750312 Springer International Publishing 344 [grantnumber unknown] open access
spellingShingle Macroeconomics/Monetary Economics//Financial Economics
Economic Policy
Public Finance
International Economics
History of Economic Thought/Methodology
Macroeconomics and Monetary Economics
History of Economic Thought and Methodology
Capital supply, capital demand
Public debt
Demography
Neo-Austrian capital theory
Keynesian economics
Private savings
Private investment
Interest rates
Macroeconomics
Open Access
Monetary economics
Political economy
Public finance & taxation
Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
von Weizsäcker, Carl Christian
Krämer, Hagen M.
Saving and Investment in the Twenty-First Century
title Saving and Investment in the Twenty-First Century
title_full Saving and Investment in the Twenty-First Century
title_fullStr Saving and Investment in the Twenty-First Century
title_full_unstemmed Saving and Investment in the Twenty-First Century
title_short Saving and Investment in the Twenty-First Century
title_sort saving and investment in the twenty first century
topic Macroeconomics/Monetary Economics//Financial Economics
Economic Policy
Public Finance
International Economics
History of Economic Thought/Methodology
Macroeconomics and Monetary Economics
History of Economic Thought and Methodology
Capital supply, capital demand
Public debt
Demography
Neo-Austrian capital theory
Keynesian economics
Private savings
Private investment
Interest rates
Macroeconomics
Open Access
Monetary economics
Political economy
Public finance & taxation
Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
topic_facet Macroeconomics/Monetary Economics//Financial Economics
Economic Policy
Public Finance
International Economics
History of Economic Thought/Methodology
Macroeconomics and Monetary Economics
History of Economic Thought and Methodology
Capital supply, capital demand
Public debt
Demography
Neo-Austrian capital theory
Keynesian economics
Private savings
Private investment
Interest rates
Macroeconomics
Open Access
Monetary economics
Political economy
Public finance & taxation
Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCP Political economy
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFD Public finance and taxation
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCL International economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
url ONIX_20210714_9783030750312_24
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