manbanker, civil servant or politicianbrought up on the traditional theory, and the trained economist also, has carried away with him the idea that whenever an individual performs an act of saving he has done something which automatically brings down the rate of interest, that this automatically stimulates the output of capital, and that the fall in the rate of interest is just so much as is necessary to stimulate the output of capital to an extent which is equal to the increment of saving; and, further, that this is a self regulatory process of adjustment which takes place without the necessity for any special intervention or grandmotherly care on the part of the monetary authority.