Here is something interesting too, this guy is explaining the IS curve. And what he shows is theobvious: when savings goes up, interest rates go down, and when interest rates go down, investment goes up. But then he goes to say that when investment goes up, GDP goes up (which is true). Then he shows how when GDP goes up, savings go up. This would mean however that if the Fed kept interest rates low, and let investment sore, then savings would follow because the savings will be going up as GDP goes up (lets say of course that the Fed only manipulated the interest rates with the discount rate, without printing money). Where would a Austrian differ? I feel like i'm missing something, because this would say that there is no need to let the market take brakes to save when the GDP will cause the savings to back the investment.
https://www.khanacademy.org/science/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/loanable-funds-interpretation-of-is-curve
I watched this once and something seems fishy. I will need to look at the math again When I am not so tired. But we do know that just as a low interest rate incentivized borrowing "investment" it also disincentivises savings.
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