In classical though, hoarding (beyond the short-term) would always be balanced by dishoarding, in which people were accumulating inventory. However, Keynesian economics acknowledges that there are different decision makers in the hoarding and dishoarding process, so that it is unlikely that hoarding and dishoarding will always remain in equilibrium. Classical theorists suggest that financial markets and interest rates can help balance hoarding and dishoarding, but this is generally seen to occur with a recession, not in a manner that can prevent a recession. The Keynesian approach to this is to stimulate demand for products. The theory is that the increase for demand in a single product leads to increased (or maintained) production, which leads to increased (or maintained) employment, which increases the demand for other products. Obviously, demand is the driving factor in Keynesian economics rather while supply is the driving factor in Say's Law.
Many people may wonder if Say's Law is even important for an understanding of modern economic theory, given the prevalence of Keynesian economics in the field. While Say's Law may be part of classical economic theory, it is important to understand it as more than a historic relic. "Say's law is not just an obsolete theory. It has been refashioned and is currently an important foundation of microeconomic theory among some U.S. economists (such as the New Classical economists, and supply-side economists)" (Sherman & Kolk 1996, p4). Say's Law is, in many ways, a laissez-faire approach to economics; though government can certainly play a role in helping maintain the desired equilibrium of the economy.
Say's Law becomes much more difficult to understand in a global economy. Supply may indeed increase demand, but that might not have an impact on a local economy when that supply is created in another location. This can make it very difficult to apply Say's Law to the current monetary and fiscal policies; because of the economy is a global one. However, Say's law suggests that consumption, alone is not enough to stimulate an economy. The idea that consumption can do so is one that has been proven false, at least locally....
Australia's Corporation Act 2004 Australia Corporations Corporation Act 2004 The purpose of this research is to investigate the Corporations Act 2004 (Cth) in relation to the protection it provides for investors of non-profit corporations. Through research of the Trade Practices Act, current case law and the Australian Investment and Securities Commission provide an overview of what has changed in the regulations for corporations in Australia in 2004 thus far. Australian Supreme Court sated
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