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Marc Lavoie, “Post-Keynesian Economics: New Foundations” (Edward Elgar, 2014)

New Books in Economics

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The Paradox of Economics

The best known example of this is the paradox of thrift, where for each of us, it is a good thing to save more. But if everybody simultaneously tries to save more, then the consequence will be a slowdown in the economy. So again, it's what seems to be good at the micro level is likely to turn out to have a quite different result at the macroeconomic level.

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