Theoretical Analysis of News Article A Working Model: Is the World Experiencing Excess Saving or Excess Liquidity?

Figure 1: Rising interest rates reduce consumption, investors try to explain the deviation between the IS curve and the overall definition of the demand function Y = C + I + G. I) stated that government expenditure is represented by (G). Include interest rates that make interest rates and investments a function of interest rates by slightly changing model equations. Y = C (r) + I (r) + G

Or I call it over-capacity economics. Today, the new economic model is evolving and beneficial for those who want to use them. Excess capacity is the fundamental cause of this new trend. I saw an advertisement for a website called parkinmydrive.com. Seriously, people are surely selling their parking space to those who want to do they do not want to drive indefinitely during peak hours until someone withdraws from the space. We borrow a house in the house and we work contract at home. We make crafts and sell them at Etsy. There are many ways to earn extra money, people become self-employed with a record number. People take a vacation and borrow their houses with Airbnb, they spend their free time to work for Uber, and they can use it when you need a ride .... They are a major part of our economy. And they did not appear independently

Now, we are caught in a liquidity trap. This means that there is not enough attractive investment opportunities to use excess savings for work. Some people (Heyman Minsky's Pemmen) say that this is because the expansion of personal credit has reached a practical limit. Overstock savings often encourage expansion of private credit, but now the private sector is being used too much to endure the burden of debt burden. It is easy for public investment to solve this problem. Goods and services that the free market will never offer will increase collective prosperity and happiness if provided by the state. They are called public goods including schools, roads, bridges and so on.