Transcript -- The Paradox of Thrift

08/29/12 • -1 min

60-Second Adventures in Economics - for iPad/Mac/PC

Transcript -- The Paradox of Thrift suggests that while it may be wise for an individual to save money when income is low and job prospects are precarious, it could be collectively disastrous if everyone is thrifty together.

Previous Episode

The Phillips Curve

Bill Phillips' curve has historically been described as an inverse relationship between the rate of unemployment and the rate of wage (and therefore price) inflation - but since his analysis became popular the relationship has changed.

Next Episode

The Paradox of Thrift

The Paradox of Thrift suggests that while it may be wise for an individual to save money when income is low and job prospects are precarious, it could be collectively disastrous if everyone is thrifty together.