saving and finance

["Edward J. McKenna" <ejmck@xxxxxxxxxxxx>]

In reference to the "discussion" presently engaging Paul and Gunnar, I
have the following question. Given the Post keynesian view that investment
causes saving, and the distinction that is maintained between saving and
finance,isn't it misleading to make statements like "when I save...' when
referring to the acts of consumers? It seems more accurate to say that
what is really occurring is a decision to provide liquidity, or perhaps
more generally, to be part of the process that supplies finance. Yet even
Paul, in his textbook, refers to individual's decisions as consisting of
two parts, first how much to consume and save (though he also refers to
this as a decision regarding how much will not be spent on currently
produced goods and services), and then the  form in which saving will be
held. It seems to me that it would help clarify the Post keynesian view if
this was re-phrased as :"first a decision must be made as to how much to
consume and how much liquidity to give up, then a decision must be made
regarding the form in which the relinquished liquidity will be held.That
is, the use of the term saving in this context only serves to create an
illusory connection between Post Keynesian and Neoclassical thought.
Take care-Ed McKenna