Updated: Aug 20, 2021

Refraining from, or at least postponing, consumption which could have been undertaken immediately. Where the funds not being spent arise from current income, abstinence is thus the same as saving; but the term also covers refraining from running down past savings or spending windfall gains.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.