Read this article.
Also in Finland it can be clearly observed that ‘households will not spend because they scared of becoming unemployed and try to minimise their outstanding debt obligations.’ Statistics Finland had on the one hand a note that showed private indebtedness is still increasing (which I referred to yesterday) but also a note that shows that the household’s saving rate seems to be increasing.
So what I am thinking, is: does e.g. the Finnish government actually believe in Ricardian Equivalence? Or does the ‘implied necessity’ of this kind of thinking help shrinking the welfare state, a goal of Liberals and Conservatives all over Europe?