The mainstream economic theory argues that savings positively affect economic growth. Keynes, on the contrary, claims that an increase in savings lowers economic growth, as reduced consumption negatively affects investment. A number of studies also argue that due to the adjustment costs and...

According to mainstream economic theory, deflation is evil, and monetary policy should provide a certain level of inflation as a buffer against the risks of deflation. However, there are some studies that argue that deflation is good for the economy and economic growth may occur alongside low...