Between savings at the gas pump, lower car payments and insurance bills, he said he was saving $700 a month.

The difference between income and savings is annual consumption.

Keynes pointed out that the link between savings and investment was far from straightforward.

If we believe this is true then statistical data would show no relationship between savings and investment within a single country.

For another, he thinks the linkages between national savings and future living standards are weaker than conventional wisdom suggests.

As they teach it in Econ 101, trade deficits are ultimately determined by the difference between domestic savings and investment.

The only possible effect on neutrality is between consumption and savings.

Some fault it for neutrality between savings and consumption.

But if the trade deficit is now to shrink significantly, the imbalance between savings and investment must also be reduced through a new policy mix.

This shows that economy's net exports must be equal to the difference between savings and investment.