tag:blogger.com,1999:blog-3621026.post1677830536603493636..comments2024-03-28T10:25:22.825+01:00Comments on Robert's Stochastic thoughts: Monkeying around with MultipliersRoberthttp://www.blogger.com/profile/14455788499385673507noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3621026.post-45887969813160051212015-06-25T16:42:31.757+02:002015-06-25T16:42:31.757+02:00The following post shows clearly that the Keynesia...The following post shows clearly that the Keynesian multiplier during recessions is negative.<br /><br />http://www.philipji.com/item/2015-06-20/the-keynesian-multiplier-is-negative-during-recessions<br /><br />And the first graph in this post http://www.philipji.com/item/2015-06-24/the-history-of-the-US-economy-in-one-graph shows clearly that the marginal propensity to consume seven years after the crash is not more than zero.<br /><br />The marginal propensity to consume is the change in consumption to a given change in income. And the graph shows that the consumption remains absolutely constant despite income increases in some months. So any increase in income goes straight to saving. For example, the spike in saving rate at the end of 2012 is the result of the spike in income being entirely saved.Philiphttps://www.blogger.com/profile/16538860062019540619noreply@blogger.com