The theory of savers-consumers of financial policies

The consumption function was the discovery of a great concept in the field of economics, which was revealed by Keynes in 1936; This function emphasizes the relationship between consumption and income in such a way that "the ratio of consumption expenditure to income changes in the opposite direction of the level of income; That is, when income increases, people consume a decreasing percentage of it and save an increasing percentage of it. Another point that Keynes proved was that when income decreases compared to before, people do not reduce their consumption in proportion to the decrease in income, and on the contrary, when income increases, consumption does not increase in proportion to it" (Branson, Shakri, 2017: 301-303). . In the Second World War, based on the recession thesis, the analysis of economists was that after the end of the war, there will be a recession; But due to the increase in private demand, not only recession did not occur, but inflation also occurred. In order to justify these differences, Madigliani, Dusenberry, Freedman, Baro-Ramzi, etc. developed various theories of consumption, and the output of all these theories led to a common point, which is that consumption behavior covers two short-term and long-term trends, which are different from each other. . In the way of analysis, these researches reached the optimal pattern of consumption, which is called "smoothing of consumption". The concept of this model is that people try to consume their income throughout their lives in such a way that their consumption remains uniform throughout their lives so that their utility is maximized; But Gregory Mankiw has criticized the "consumption smoothing theory" and presented a new theory by presenting the article "Theory of savers-consumers of financial policies".