saving more during adverse economic conditions paradox of thrift can cause or deepen a recession Hyman Minsky their assets
What is an example of something that can be detrimental if too many individuals pursue the same behavior? What is it called when too many consumers attempt to save or pay down debt at the same time? What will happen if too many consumers save or pay down debt simultaneously? Who is the economist who described a "paradox of deleveraging"? Financial institutions cannot all de-leverage simultaneously without a decline in the value of this?
Behavior that may be optimal for an individual (e.g., saving more during adverse economic conditions) can be detrimental if too many individuals pursue the same behavior, as ultimately one person's consumption is another person's income. Too many consumers attempting to save (or pay down debt) simultaneously is called the paradox of thrift and can cause or deepen a recession. Economist Hyman Minsky also described a "paradox of deleveraging" as financial institutions that have too much leverage (debt relative to equity) cannot all de-leverage simultaneously without significant declines in the value of their assets.
question: What is an example of something that can be detrimental if too many individuals pursue the same behavior?, answer: saving more during adverse economic conditions | question: What is it called when too many consumers attempt to save or pay down debt at the same time?, answer: paradox of thrift | question: What will happen if too many consumers save or pay down debt simultaneously?, answer: can cause or deepen a recession | question: Who is the economist who described a "paradox of deleveraging"?, answer: Hyman Minsky | question: Financial institutions cannot all de-leverage simultaneously without a decline in the value of this?, answer: their assets