Well, no. It is one thing to identify a higher national saving rate as the long-term goal, and quite another thing to try to get there overnight in the form of a sudden drop in consumption spending. Here I am very much taking the side of Brad DeLong ([1],[2]) andArnold Klingand...
This example of a fallacy of composition is often called the “paradox of thrift.” Since economists are presumably well aware of the concept of a “fallacy of composition,” it is surprising that they were tripped up by a fallacy of composition in the context of international capital mobility...