Huge concentrations of wealth have distorted and destabilised financial markets, which now need to be reformed.
A summary of this section of the blog.
How everything in the blog so far explains the fall in productivity in recent years.
Failing to channel saving to investment will lead to the paradox of thrift, slowing growth in productivity, while simultaneously causing asset price bubbles.
An explanation of what the saving-investment identity actually tells us about how the economy functions (everything in the blog so far has been leading up to this point).
A logical proof that the explanation in textbooks of why the saving-investment holds must be wrong, so that you can fully understand the implications of this identity, explored in the rest of this section.
The conclusion that textbooks draw from the saving-investment identity is unequivocally and completely WRONG. This post explains why, drawing on the information in “Money” section of the blog, to make sure that you do not fall into making the same errors.
An explanation of the saving-investment identity, a concept that has profound implications for the economy, which will be drawn out in the rest of this section.
An explanation of why national income equals national expenditure, again as a stepping stone to the next post.