Perfectly functioning credit markets and consumer saving
I did some quick research online and think I understand better. My basic understanding is that credit market imperfections restrict a consumer's capacity to borrow or to lend, thus his or her saving ceases to be a &quot;neutral&quot;/&quot;fully&quot; endogenous variable. (Rather than being a means to an end--maximize lifetime wealth--it becomes more and more of an end in itself?)