When Demand Creates its Own Supply: Saving Traps

• 成果类型: Article
• 署名作者: Chamley, Christophe
• 署名单位: Boston University
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdt041
• 发表日期: 2014
• 页码: 651-680
• 关键词: random-matching model; search equilibrium; financial crises; monetary-theory; money; PARADOX; thrift; POLICY; cycles

摘要

The mechanism by which aggregate supply creates the income that generates its matching demand (called Say's Law), may not work in a general equilibrium with decentralized markets and savings in bonds or money. Full employment is an equilibrium, but convergence to that state is slow. A self-fulfilling precautionary motive to accumulate bonds (with a zero aggregate supply) can set the economy on an equilibrium path with a fast convergence towards a steady state with unemployment that may be an absorbing state from which no equilibrium path emerges to restore full employment.