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Changing treasury attitude - PowerPoint PPT Presentation

Keynesian income-expenditure model S = f(Y) I ?f (Y) ?NAFA (=S-I) = f(Y)

Keynesian income-expenditure model S = f(Y) I ?f (Y) ?NAFA (=S-I) = f(Y) i.e. step change in Y ? perpetual accumulation of assets Cambridge view: STOCK of financial assets (not rate of acquisition) a function of (in fact proportional to) income ? NAFAt = (1 - ?) ( YDt -YDt-1 )

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Changing treasury attitude - PowerPoint PPT Presentation

Keynesian income-expenditure model S = f(Y) I ?f (Y) ?NAFA (=S-I) = f(Y)