Learn how the marginal propensity to save (MPS) impacts economic decisions and calculations. Discover its role in Keynesian economics and how to calculate MPS effectively.

This week “The Economist explains” is given over to economics. For each of six days until Saturday this blog will publish a short explainer on a seminal idea. WHEN Barack Obama sought to boost America ...

Explore how the crowding-out and multiplier effects impact government stimulus spending. Learn which theory better stimulates ...

In a normal economy, 40% of new hires are people who switched right over from another job: Friday at Walmart, Monday at Target. The other 60% come from some mix of the unemployment lines and the ether ...

There is a small war going on between liberal and conservative economists about whether government stimulus packages increase or do not materially affect basic levels of economic activity. Liberals ...

Just how important is money? Few would deny that it plays a key role in the economy.­ During the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the ...