Abstract
The forced saving doctrine proposes that an increase in the amount of money may be favourable to capital accumulation at the cost of a reduction in consumption of certain individuals, who have not saved voluntarily. A consensus emerged that new credit might lead to additional, at least temporary, investment even in a full employment situation via an increase in the price level, though Lindahl and Keynes did not consider the extra saving to be forced. However, it was generally thought unwise and unjust to rely on credit inflation as a means of increasing capital accumulation.
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Hansson, B. (2018). Forced Saving. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_28
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DOI: https://doi.org/10.1057/978-1-349-95189-5_28
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