brockm on Nostr: Moreover, the value of savings is tied to the productive capacity of the economy. If ...

Moreover, the value of savings is tied to the productive capacity of the economy. If an economy is more productive, each unit of saved currency can command more real goods and services in the future. However, if an economy’s productivity stagnates or declines, the real value of savings may decrease, regardless of whether the nominal amount of money saved grows.