Friday, January 19, 2018

Keynes on Excessive Finance

From Chapter 8, Section IV of the General Theory:

We cannot, as a community, provide for future consumption by financial expedients but only by current physical output. In so far as our social and business organisation separates financial provision for the future from physical provision for the future so that efforts to secure the former do not necessarily carry the latter with them, financial prudence will be liable to diminish aggregate demand and thus impair well-being ...

1 comment:

The Arthurian said...

Dietrich Vollrath in Wealth and Capital are Different Things:

"I think the story that is milling around beneath the surface of Piketty's book is that recent wealth accumulation has been primarily of financial assets, not capital."