Interest Rate-Savings Nexus: Keynesian-Classical Debate Revisiting in OECD Economies

Abdullah Miraç Bükey

Makale detayları

Interest Rate-Savings Nexus: Keynesian-Classical Debate Revisiting in OECD Economies

Yazarlar:

Abdullah Miraç Bükey

Yayıncı:

Istanbul University

Ana Başlıklar:

Makro İktisat (Diğer)

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.299-316

Belge Tipi:

Makale

Yayın Tarihi:

8/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001326923

pISSN:

2148-3876

Anahtar kelimeler:

Özet:

 There are many factors that determine savings, especially income and consumption. However, classical and Keynesian economic theories disagree on how interest rates affect savings. According to classical theory, an increase in interest rates will increase savings, whereas, according to Keynes, it will definitely decrease it. This is because, according to Keynes, savings are a decreasing function of interest rates and an increasing function of income. In this study, the effect of GDP per capita, especially interest rates, on savings is analysed in the context of the disagreement between Classical and Keynesian economic theories by using a static panel data analysis method on a sample of 35 OECD countries. According to the findings of this study, a 1 increase in GDP per capita increases gross domestic savings by approximately 2.25, whereas a 1-unit increase in interest rate decreases gross domestic savings by approximately 2.26. In conclusion, in the dispute between mainstream economic theories regarding the interest-savings relationship, Keynesian theory prevails in the context of OECD countries from 1995 to 2021. In this respect, from a macroeconomic policy perspective, the focus should be on increasing total income rather than interest rates to increase savings.

 There are many factors that determine savings, especially income and consumption. However, classical and Keynesian economic theories disagree on how interest rates affect savings. According to classical theory, an increase in interest rates will increase savings, whereas, according to Keynes, it will definitely decrease it. This is because, according to Keynes, savings are a decreasing function of interest rates and an increasing function of income. In this study, the effect of GDP per capita, especially interest rates, on savings is analysed in the context of the disagreement between Classical and Keynesian economic theories by using a static panel data analysis method on a sample of 35 OECD countries. According to the findings of this study, a 1 increase in GDP per capita increases gross domestic savings by approximately 2.25, whereas a 1-unit increase in interest rate decreases gross domestic savings by approximately 2.26. In conclusion, in the dispute between mainstream economic theories regarding the interest-savings relationship, Keynesian theory prevails in the context of OECD countries from 1995 to 2021. In this respect, from a macroeconomic policy perspective, the focus should be on increasing total income rather than interest rates to increase savings.

 There are many factors that determine savings, especially income and consumption. However, classical and Keynesian economic theories disagree on how interest rates affect savings. According to classical theory, an increase in interest rates will increase savings, whereas, according to Keynes, it will definitely decrease it. This is because, according to Keynes, savings are a decreasing function of interest rates and an increasing function of income. In this study, the effect of GDP per capita, especially interest rates, on savings is analysed in the context of the disagreement between Classical and Keynesian economic theories by using a static panel data analysis method on a sample of 35 OECD countries. According to the findings of this study, a 1 increase in GDP per capita increases gross domestic savings by approximately 2.25, whereas a 1-unit increase in interest rate decreases gross domestic savings by approximately 2.26. In conclusion, in the dispute between mainstream economic theories regarding the interest-savings relationship, Keynesian theory prevails in the context of OECD countries from 1995 to 2021. In this respect, from a macroeconomic policy perspective, the focus should be on increasing total income rather than interest rates to increase savings.

 Bir ulusal ekonomide tasarrufları belirleyen başta gelir ve tüketim olmak üzere birçok faktör mevcuttur. Ancak, faiz oranlarının tasarrufları nasıl etkilediği konusunda Klasik ve Keynesyen ekonomi teorileri arasında bir anlaşmazlık söz konusudur. Klasik teoriye göre faiz oranlarındaki bir artış tasarrufları artırırken, Keynese göre kesinlikle azaltacaktır. Çünkü Keynese göre tasarruflar faiz oranlarının azalan, gelirin ise artan bir fonksiyonudur. Bu çalışmada, Klasik ve Keynesyen iktisat teorileri arasındaki görüş ayrılığı bağlamında kişi başına düşen GSYHnin ve özellikle faiz oranlarının tasarruflar üzerindeki etkisi 35 OECD ülkesi örneklemi üzerinden statik panel veri analizi yöntemi kullanılarak incelenmiştir. Çalışmanın bulgularına göre, kişi başına GSYH değişkenindeki 1lik artış gayrisafi yurtiçi tasarrufları yaklaşık 2,25 oranında artırırken, faiz oranı değişkenindeki 1 birimlik artış gayrisafi yurtiçi tasarrufları yaklaşık 2,26 oranında azaltmaktadır. Sonuç olarak, faiz-tasarruf ilişkisine dair ana akım iktisat teorileri arasındaki tartışmada, 1995-2021 döneminde OECD ülkeleri bağlamında Keynesyen teori ağır basmaktadır. Bu bakımdan, makroekonomik politika perspektifinden bakıldığında, tasarrufların artırılması açısından faiz oranlarından ziyade toplam gelirin artırılmasına odaklanılmalıdır.

Makale detayları

Interest Rate-Savings Nexus: Keynesian-Classical Debate Revisiting in OECD Economies

Yazarlar:

Abdullah Miraç Bükey

Yayıncı:

Istanbul University

Ana Başlıklar:

Makro İktisat (Diğer)

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.299-316

Belge Tipi:

Makale

Yayın Tarihi:

8/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001326923

pISSN:

2148-3876

Savings

Interest

Panel data analysis

Keynesian theory

Classical theoryTasarruf

Faiz

Panel veri analizi

Keynesyen teori

Klasik teori

Sayı

Makale detayları

Yazarlar: Abdullah Miraç Bükey

Yayıncı: Istanbul University

Ana Başlıklar: Makro İktisat (Diğer)

Dergi: İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.299-316

Belge Tipi: Makale

Yayın Tarihi: 8/2024

Belge Dili: İngilizce

Document ID (Org No.): 2001326923

pISSN: 2148-3876

Sayı

Yazarlar:

Abdullah Miraç Bükey

Yayıncı:

Istanbul University

Ana Başlıklar:

Makro İktisat (Diğer)

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.299-316

Belge Tipi:

Makale

Yayın Tarihi:

8/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001326923

pISSN:

2148-3876