Is This a Good Model or a Bad Model?

Gershin-Chrone argued that if you can force up the domestic savings rate by reducing the share retained by ordinary households, then you can fund domestic investment with domestic savings. You need to concentrate the savings domestically within the banking system. And then you need some mechanism and it's usually government control of the banking system that forces banks to lend into investment. So you have high savings and through the domestic banking system, you have high investment. Now, is this a good model or is it a bad model? And the answer, which should be the answer to every question in economics is it depends on the underlying condition.

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