Re: Much ado about nothing?

I can save in the form of any asset I wish. If we accept that the level of
government borrowing does not influence net saving, then the more the
government borrows, the more people save in the form of government debt,
rather than some other asset. With given net saving, this must have the
effect of lowering demand for other assets, and hence lowering aggregate
demand.
Received on Tue Feb 4 14:23:53 2003