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Lipsey & Chrystal: Economics 11e

Chapter 16

The behaviour of UK saving is central to this chapter and especially the case study on page 379.  The following story updates the data on the UK household saving ratio and points out that if saving were to rise then this would lower current demand and make a recession more likely. The phenomenon is sometimes referred to as “the paradox of thrift”.
Sunday Times, Business Section, Sunday, August 10, 2008 (This article also links to the behaviour of the current account of the balance of payments covered in Chapter 17)
http://business.timesonline.co.uk/tol/business/columnists/article4492452.ece