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Investment activity produces effects on two different economic variables. On the one hand, it adds to the existing … make the two aspects of investment compatible to each other. In all cases, a distinction has been made between the … the demand aspect of investment. The adjustment mechanism discussed earlier is based on investment reacting to positive or …
Persistent link: https://www.econbiz.de/10005260126
effective demand model by Bhaduri & Marglin in which investment is determined by costs and capacity utilisation and in which … usually expected in post-Keynesian theory only exists under special conditions. …
Persistent link: https://www.econbiz.de/10008574608
Theoretical models point at various channels of the impact of inflation on corporate investment. This article attempts … corporate investment and inflation on the sample of 21 OECD countries in the years 1960-2005. The obtained negative relationship … relationship: marginal effect on corporate investment is higher at inflation rates between 3 and 5.5 per cent. These results …
Persistent link: https://www.econbiz.de/10008923022
This study investigates the relationship between saving, investment and economic growth for India over the period 1950 …. However, few studies show evidence for growth driven saving and some suggest no relationship. In theory, saving may stimulate … test show that higher saving and investment lead to higher economic growth, but the reciprocal causality is not observed …
Persistent link: https://www.econbiz.de/10011259639
In his Inquiry into the Nature and Causes of the Wealth of Nations Adam Smith (1776) considered the phenomenon of division of labor so enormously significant for the creation of a nation’s wealth that he devoted the first three chapters of his book to an investigation of this process. This is...
Persistent link: https://www.econbiz.de/10008596380
Approaching the theory of economic cycle is not an issue that comes in hand! We are permitted to make such a statement … based on the idea that explanations concerning the business cycle theory are strictly related to how each school of thought … various points of view. Throughout this paper we will make a brief doctrinaire promenade starting with the monetary theory …
Persistent link: https://www.econbiz.de/10009368464
The modern economic theory implemented today is inherently flawed. Unfortunately these flaws are not apparent in … contemporary economic theory which is built on the idea that scarcity is an ever present condition; an approach referred to as … scarce resource theory (SRT) in operating level economics. The consequence of this is that leaders around the world and the …
Persistent link: https://www.econbiz.de/10009203644
The marketplace, along with its price system, is the single most important institution in a western-style free enterprise economy. The ability of prices to adjust to changes in supply and demand conditions enables the market to function efficiently and lies behind the magical invisible hand...
Persistent link: https://www.econbiz.de/10005835391
The price system, the adjustment of prices to changes in market conditions, is the primary mechanism by which markets function and by which the three most basic questions get answered: what to produce, how much to produce and for whom to produce. To the behaviour of price and price system,...
Persistent link: https://www.econbiz.de/10005836108
alternative explanations for the price rigidity, and conclude that the menu cost theory offers the best explanation for the …
Persistent link: https://www.econbiz.de/10005616644