Re: [Re: General Theory Seminar --Savings and Investment]

["Harry Veeder" <veed0001@xxxxxxxxxxxxxxxx>]

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>From: "Kazuhiro Kurose" <kurose@xxxxxxxxxxxxxxxxxxxxxx>
>To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
>Subject: Re: [Re: General Theory Seminar --Savings and Investment]
>Date: Mon, Mar 6, 2000, 3:06 am
>

>Dear William B.Ryan and others
>
>William B.Ryan said as follows.
>> The truth is that investment and saving are CORRELATED not equal
>> processes.  If growth is steady-state, the ratio between investment and
>> saving remains constant.  Except by pure chance, investment never (if
>> instantaneously measured) equals saving.  If there is parametric shift, I
>> and S will diverge exponentially.
>> I and S are volitionally independent.
>
>What does this mean? Does it mean that saving and investment are not equal
>even if ex-post? I have understood that
>ex-ante investment is not necessarily equal to ex-ante saving. Please tell
>me some more in detail.
>
>Sincerely

My 2 cents...

The only reason for government (or economists) to measure and record
aggregate investment and saving behaviour is the futile attempt to
*control* aggregate investment and saving behaviour.

All theories that require the measurement I and S are theories
of control and this leads to the bizarre pronoucement that
we have no freedom to save.

Harry Veeder