How to compare the causal relationship between savings and investment in the short and long run in m

Personally, I believe that investment in macroeconomics refers to the purchase of fixed assets such as plant machinery and equipment, and if the bread machine is equipment, then holding the bread machine is an investment. I think that the form of money held, whether it is held in your own hands, kept in a bank or lent to others, is a kind of savings, which is not consumed now for future consumption.

Back to the topic, the baker has 7,000 in savings, the barber has 3,000 in savings, and the capitalist has 10,000 in stock of the bread machine (the inventory counts as an investment). In fact, here, the savings of the economy are already equal to investment (the example of this economy is not good, because the labor of the barber and the baker has nothing to do with the bread machine), and then no matter how the three of them trade, it is just a transfer of assets, who will hold it. The capitalist gives the bread machine to the baker, the capitalist now holds 10000 currency, if it is not consumed, it is 10000 savings, and now the baker has a bread machine, which counts as an investment of 10000, and at the same time the baker has 3000 debts, which is counted as savings - 3000.

And the barber is still saving 3000. In this way, the economy is still equal to investment.

Personal understanding.

My point of view and just now.

Similarly, the concepts of "savings" in the economic sense are not the same as "holding funds" and "disposable funds". In macroeconomics, the concept of savings is the funds deposited in financial institutions, including bank deposits, buying wealth management products, etc.

As for the second question, I think it is necessary to distinguish between the material form of money and the economic properties. The money in your hand is only used for trading, and the money in your hand is only money, neither saving nor investing.

In addition, I would like to say that you put the distinction of macroeconomics in microeconomic activity, and it is also in the production process. This is not appropriate, because macroeconomics is the study of macroeconomic operation, and explains the laws of macroeconomic operation that can be described by statistics. The economic theories that focus on the production process include the cost theory of microeconomics and the reproduction theory of Marxist economics.

It is a question of matching the object of study with the theory.

This is the same as grain statistics, one ton of corn is converted into a standard ton of grain, one ton of soybeans is converted into two standard tons of grain, and one ton of rice and wheat is converted into one standard ton of grain. Okay, now I ask you, is soybean stewed pig's trotters counted as grain or non-staple food? Is it calculated according to the weight ratio of soybeans, pig's trotters and other ingredients or according to the value ratio?

What is the ratio of cooking oil used in cooking to soybeans or rapeseed?

The analogy is not appropriate, but I don't think it is necessary to apply macroeconomic principles to microeconomic activities, which is a bit of a bull's horn.

Investment** is not considered an investment in economics.

Investment refers to the act of a business or individual buying with accumulated currency to obtain profits. **Income from an investment is made up of two components: "Income Gain" and "Capital Gain". Income income refers to the income from dividends and bonuses obtained by investors as shareholders in the company's profit distribution according to the share of shares.

Capital gains refer to the income obtained by investors in the change of ****, that is, the difference in price obtained by buying at a low price and selling at a low price.

1. Although savings deposits are based on credit, their nature is different. **It is based on capital credit, which reflects the rights and obligations formed between the joint-stock company and shareholders around the investment. Savings deposits, on the other hand, are a kind of bank credit, which establishes a loan-creditor-debt relationship between banks and depositors.

The purchaser is a shareholder of a joint-stock company, while the depositor is actually a lender who lends his temporarily idle funds to the bank.

2. The legal status and rights of the holder and the bank depositor are different. Although both holders and depositors enjoy certain rights and bear corresponding responsibilities, holders are in the position of shareholders and have the right to participate in the production and operation decisions of shares. The depositor, on the other hand, is only a creditor of the bank, and the content of its claim is limited to the regular recovery of principal and interest, but it cannot participate in the operation and management of the debtor, and does not bear any responsibility for its business situation.

3. Although both ** and savings deposits can increase the value of money, their risks are different.

** is a direct investment in shares, which can directly obtain the pursued income - dividends and bonuses according to the operating conditions and profitability of shares. This return can be very high, low or none, and it varies from year to year depending on the operating performance of the joint-stock company, and is subject to a constant change. Savings deposits, on the other hand, only earn income by fulfilling the saving function of money - interest on deposits.

This value-added component is pre-agreed and fixed, and it is not affected by the bank's operations.

4. ** and savings deposits have different duration and transfer conditions. ** is indefinite, no matter how the situation changes, shareholders cannot ask the joint stock company to withdraw the shares and recover the share capital, but can be bought and sold and transferred. Savings deposits, on the other hand, generally have a fixed term, and the principal and interest can be recovered at maturity.

Even if it is withdrawn in advance, any form of savings can recover the principal, and it can only be transferred to the market, and it must be accompanied by the market, and whether the investment can be recovered depends on the transaction at the time of the transaction.

Savings are 0, investments of 10,000 and 3,000

Both saving and investing are about preserving the value of your money.

Savings is money put into financial institutions, mostly referring to banks.

Investment is money that is invested in economic activities to obtain reports.

The baker has 0 savings and 10,000 investments

The barber has 0 savings and 3000 investments. If there is interest, if there is no interest, the barber's savings are 3000 and the investment is 0

Saving and investing are the same thing, both are giving up the consumption of the present for the sake of future consumption. So don't worry so much, saving is investing.

The sum of savings and investment should be equal to the total output value, that is, ten thousand, so the investment is seven thousand, the savings are three thousand, and the others are zero.

Monetary funds are actually a commodity, and the process of their circulation in the market is a process of exchange. Like any physical commodity, it should certainly have a **, and it's ** is the interest rate. Banks are intermediaries in the capital market, and their intermediary income is achieved through interest differentials.

Investment demanders borrow funds from banks and need to pay a fee, which is interest, that is, the purchase of "the right to use monetary funds" needs to be paid**. In the same way, banks borrowing savings funds from depositors also need to pay a fee, that is, the "right to use monetary funds". But there is a difference between the two, and that difference is the bank's profit.

Banks need to be rational about the size of this difference, that is, they should not be too greedy. The interest rate at which the bank lends money must not be greater than the average profit level of social production, otherwise, no one will borrow from him, and this will hinder the demand for investment; The interest rate at which banks borrow savings funds should not be too low, otherwise, it will hinder the demand for savings, make the supply of funds in the market insufficient, and also fail to guarantee the need for investment. Therefore, this interest rate level is a measure to ensure that the supply of funds (savings) and the demand for funds (investment) are balanced.

To put it simply, this is a simplified model. In the lending market, the supply side is the person who has surplus money, that is, the person who has savings, think of the former landlords. The demand side is the person who wants to borrow money, think of Yang Bailao, but this demand here simplifies it to the demand for investment purposes.

The point is that the money is not for you to use in vain, you pay interest. So the interest is the ** used by the funds.