Macroeconomics 15th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 2

Use the following lyrics to describe the difference between Keynes and Hayek on the role of savings in the economy.
[Keynes] So forget about saving, get it straight out of your head.
Like I said, in the long run-we're all dead.
Savings is destruction, that's the paradox of thrift.
Don't keep money in your pocket, or that growth will never lift.
[Hayek] Real savings come first if you want to invest.
The market coordinates time with interest.
Your focus on spending is pushing on thread.
In the long run, my friend, it's your theory that's dead.
Whether it's the late twenties or two thousand and five Booming bad investments, seems like they'd thrive. You must save to invest, don't use the printing press
Or a bust will surely follow, an economy depressed.