A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output. ↗
Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more. ↗
The rule which should guide us in such cases is simple and obvious enough: that the aggregate testimony of our neighbours is subject to the same conditions as the testimony of any one of them. ↗