Bite Size Economics No.28
'Too often economic analysis conflates aggregated demand with effect demand'.
There's lots of talk of 'demand' in economics, but this is often presented as a society wide total needing to be increased. But, the rich spend their money differently (see BSE 5) & so JM Keynes stressed what was actually needed was 'effective demand'.
If you want to increase demand money needs to get into the hands of those who spend it quickly/everyday.
Replying to @ChrisMayLA6@mastodon.me.uk
@ChrisMayLA6 PS “conflates aggregated demand with effect demand” - shouldn’t that be effective demand? #typo, maybe 🙂
Replying to @alex_p_roe@mastodon.world
Indeed, it should, and now does - thanks as always for your eagle eyed attention to the typos in my posts - you're a saviour. have a good week
Replying to @ChrisMayLA6@mastodon.me.uk
@ChrisMayLA6 Thanks. You too. After this morning’s eye injection, the rest of the week should be plain sailing 🙂
